Quite a few people these days have heard about renters insurance. This type of insurance can offer reimbursement and financial help if the property you’re renting is damaged. In fact, many renters first hear about this type of insurance when they’re getting an apartment, when the landlord will make it an absolute requirement before you can rent a unit.
The essence of this insurance coverage is to provide compensation, should a peril that’s specified in the policy damage your belongings inside the rented space. These perils can include common problems like fire, burst pipes, theft, and vandalism. In some cases, your temporary living expenses such as motel payments may be covered while you’re unable to stay inside your apartment. Your policy may even cover a portion of your medical or even legal fees.
However, some people seem to have a rather inaccurate idea of what renters insurance really do cover. To help clarify the situation, let’s list down some of the more common myths:
- Your roommate is covered by your insurance policy. That’s not the case at all. It’s true that typically the policy may cover anyone in the household who’s related to you, by blood, adoption, or marriage. But it won’t include just plain non-relative roommates. They have to get their own renters insurance policy.
- You don’t need renters insurance because your landlord already has insurance. Why would you believe this? If it were true, then landlords wouldn’t have to require tenants to get their own insurance. The fact is that your landlord’s insurance policy covers only the structure of the apartment complex. It doesn’t cover your personal belongings that can be destroyed in a fire or stolen by thieves.
- You don’t need this kind of insurance because you’re already covered by your parents’ insurance policy. This is only true if you live with your parents and that their insurance policy specifically covers your personal items.
- You don’t need this type of insurance because you actually don’t own too many valuable items. This is the kind of thinking that lots of college people have, since they often live in dorms. But a more careful assessment of the worth of your belongings can quickly dispel this false notion.
If you’re a student, then you probably own either a laptop or a desktop PC. How much will it cost you to replace them if they’re stolen or absolutely destroyed? Then you also have your own wardrobe. How much will it require replacing them all if all your clothes are destroyed by fire? Your sneakers alone can cost a pretty penny, as well as you wristwatches, jewelry, and designer clothes.
- Renters insurance doesn’t include liability. Actually it does. So part of your renters insurance can include an amount of money that’s to help pay for medical treatments should any of your guests get injured while they’re inside your apartment.
- Renters insurance is expensive. No it’s not. Getting property coverage for $30,000 with $100,000 for liability coverage will cost you a grand total of $12 a month, on average. In some cases, renters can obtain a policy that costs $5 a month.
- You have to be home for the insurance to take effect. Even if you’re back at your parents’ house while your property burns up in an apartment fire, the policy still kicks in.
- It can take a lot of time to finish getting a policy for this kind of insurance. Actually, it won’t even take you an hour. A few minutes should do it.
Hopefully, fewer people will regard these myths as fact so they can get proper renters insurance. If you are renting, you simply need one. That’s a fact, and everything else that runs counter to this notion is a myth.