When you are deciding whether you want to buy or rent a home, it’s important to factor in all the costs. This includes insurance. While homeowners insurance is often required when you own and merely suggested when you rent, it is a valuable tool no matter which situation you are in. For renters it’s a good idea to understand what costs landlords will take on. This typically means repairs and property taxes. But even if your landlord has insurance, it doesn’t mean you, as a renter, are covered. Renters insurance covers your belongings in the event of burglary, fire or a natural disaster. It is an added expense but here are some reasons you might want to invest in renters insurance.
1. It’s Not Super Expensive
As crazy as it may seem, monthly premiums for renters insurance are probably lower than your weekly bar tab. You can get quotes easily and quickly, but you are unlikely to find a plan that sets you back more than $30 a month. Unless you have collectibles and pricey antiques, it will likely hover between $10 and $20 a month.
2. It Provides Liability Coverage
Standard renters insurance policies not only protect your things, they also include liability coverage, protecting you if someone is injured while in your home. This will cover any court judgment and legal expenses up to your specific policy limit.
3. It Replaces Your Things
Even if you don’t think your personal property is worth much, consider how much it would cost to replace your clothing, books, furniture, jewelry, laptop, television, smartphone and anything else you have accumulated. Renters policies cover against a long list of dangers that could help you rebuild your life if necessary.
4. It Helps Pay for Living Expenses
Aside from helping you buy replacement goods and covering liability expenses, renters insurance can help cover “additional living expenses” if you get temporarily displaced. This can include rent, food and more. Some policies also help you protect your credit and identity. Some policies offer identity theft protection and insure you against losses due to unauthorized credit card use or check fraud too. (You can spot fraud by checking your bank accounts and credit regularly. You can see two credit scores for free every month on Credit.com.)
5. Peace of Mind
The best thing you gain from renters insurance may just be peace of mind, but that can go a long way. Having coverage for your belongings offers what your landlord’s insurance does not.
Many people who opt out of renters insurance think that they cannot afford it, but doing your research and considering some expert renters insurance tips just may change your mind if you still aren’t convinced.
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