When I moved out on my own, I had no idea what renters insurance was, let alone why I should buy it. My fiscally-responsibly mother brought up the topic with me as we were carrying boxes into my new apartment, and although I outwardly assured her that I’d be making the purchase, I was inwardly groaning. As a recently independent adult with brand new foreign bills to pay, like rent and electricity, I was not interested in yet another bill.
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My mom is a friend of our insurance agent, though, so I knew I couldn’t get away with not calling at all. So, I thought, “I’ll just call to inquire about it. It will make her happy.” I had no intentions of actually making a purchase.
Yet after talking to my insurance agent for 15 minutes or so, I concluded that mom was right. Here are the five most important things I learned during that phone call – and if you’re a renter, it might make you want to consider a policy too.
1. Your possessions are protected if there’s a natural disaster. Hopefully, I never have to deal with this (and hopefully you don’t either), but if there’s a fire, tornado, flood, or other type of natural disaster that damages or destroys your rental property, your landlord’s insurance won’t help you. His/her insurance only covers the actual property – not your possessions. That’s where renters insurance comes into play. A policy makes it possible for you to replace your items, and even though you may not only anything super expensive, it can cost a pretty penny to replace your clothing, furniture, television, toiletries, etc.
2. Your possessions are protected if someone breaks into your house. Even if a very safe neighborhood, there’s always the chance that someone could break into your house. If they vandalize the place or steal anything, once again, your landlord’s insurance will only cover the actual building. Unless you have spare cash that you can use to replace anything stolen or damaged, you’ll need renters insurance to get back on track.
3. Your items are protected when you travel. Many renters insurance policies also protect items you own when you’re on vacation. For example, if someone steals your expensive new camera while you’re on vacation, your insurance company will replace it. Not every company provides this kind of protection, but it’s certainly helpful if yours does.
4. If someone gets hurt, you won’t have to pay for it. Sometimes, accidents happen. If your guest stumbles down the stairs or burns a hand on the stove, it can cost hundreds or even thousands of dollars in medical bills. Your friends would never sue you, right? You might be surprised what people do when face with bills they can’t pay. Their medical insurance could also come after you, placing the blame on you and holding you responsible for reimbursement, so even if your friends would never, ever think about suing you for an accident, it might be out of their control. Renters insurance protects you, covering the costs associated with a visitor getting hurt at your home.
5. It’s cheap! And now, here’s my favorite reason to purchase renters insurance – it’s really inexpensive! The average policy only costs $15 to $20 per month, and you can save money by bundling it with other insurance polices (like car insurance), installing safety items such as deadbolts, and more. I live in a safe neighborhood, and with the other things I’ve done to save money, my policy actually costs less than $10 a month. You can’t beat that price for peace of mind, so check out renters insurance today to see if a policy could be a good idea for you.
This guest post is from Allison Boyer, who works with, where you can go to learn more about this type of insurance.