Most people do not have renters insurance. Don’t think they need it or don’t want to spend the money. I understand this, I was there. But, please read on to give yourself some more information.
Renters insurance covers many things. How could you afford to replace your things due to a fire, flood or theft? If you live in a building and a fire starts at the other end by someone else, then burns your things, who will pay? When do you get compensated for your things? What if the floor above you has a water leak and you need to be out during repairs?
Renters insurance also has a liability part. Most people love and have dogs. What if the dog bites someone? What if someone slips and falls inside your rental unit?
These items could be covered in a renter insurance policy. I know what you are thinking, insurance is expensive and I do not have much stuff. Purchasing insurance is an individual decision and insurance is for ‘just in case’. I know people who have said it would have been cheaper to have insurance then pay on my own.
Insurance is one of those things we hate to pay but are glad when we have a claim. Like car insurance, you never plan on having an accident, but when you do you are glad you are covered.
I asked a friend for a quote and this is what I got. For coverage of $20,000 of personal property, $100,000 liability, $1000 medical the annual premium was $124.00 per year.
People have a lot more money in “stuff” than they realize and in a sue happy world, it’s also pretty easy to lose several years worth of income in a split second over something like a skateboard left on the sidewalk.
Picture yourself out of your rental unit after a fire. The landlord will give you your deposit back, but that takes time. How’s your bank balance looking? Do you have enough for first month’s rent and security deposit? Oh, and what will you wear to work now that your clothes are all gone? Think about insurance. Be informed, get a quote. Make smart decisions.