4 Common Myths About Renter Insurance Coverage You Should Know

4 Common Myths About Renter Insurance Coverage

If you’re renting an apartment or home, protecting your valuables is essential. Because that’s your responsibility, acquiring renter’s insurance is a wise choice.

But there are common fallacies about this type of coverage that drives renters away.

Unlike homeowners, a mere 37% of renters carry renters insurance. Disheartening, since most renters occupy the most disaster-prone cities in the US.

Carrying this type of coverage protects you and your family from liable situations. Pets as well. It also insures all the things you’ve worked so hard to maintain.

If you’ve heard rumors and you have fears about securing renters insurance, read on. Here are four myths about renter insurance coverage you should be aware of.

1. I Don’t Have That Many Valuables to Need Renter Insurance Coverage

A large number of renters live the simplest lives. They manage to live off the essentials and a few pleasures. For that reason, they forego renter’s coverage because they don’t believe they have enough stuff.

When it comes to the value of their possessions, renters most often underestimate them. Just because you don’t have a house full of stuff doesn’t mean your things have no value.

Before you make the decision to pass up on coverage, estimate the value of your stuff. Walk through your living space, taking photos and video to assess your things. List everything, then add up the values. What you have may surprise you.

2. Carrying Insurance Isn’t My Responsibility

Let’s clear up some confusion. Your landlord owns the property you live in not the things you’ve paid for.

The owner’s responsible for insuring the building’s structure. So if an earthquake shook down the building, the owner pays to have it rebuilt. Personal property inside the building does not get replaced, because it’s not covered under the owner’s insurance.

Your personal property is your responsibility. If damage or theft occurs, you pay out of pocket to replace it or rely on renters insurance.

3. I Live in an Environmentally Safe Area

People often believe because they don’t live where natural disasters frequent, they don’t need coverage.

While that’s reasonable thinking, renters insurance covers more than damage caused by disasters. Most policies protect your valuables from theft, indoor water damage, and fires.

And if your pet bites a neighbor, that’s covered under your policy as well.

4. I Can’t Afford the Premium

Frugal renters like to keep their costs down. Outside of car and health insurance, they find it hard to pay any other premiums.

Contrary to popular belief, renters insurance isn’t pricey. In fact, it’s not a large financial add-on to your monthly expenses. At the very most, for average policies, you’d add no more than $200 a year. That’s the cost of one month’s electric bill.

Most insurers allow you to pay monthly. So consider an extra $10-$20 dollars more out-of-pocket every month. Make coffee at home for two days instead of buying out, and you just paid for renters insurance.

Protect Your Valuables

You don’t need to have a lot to protect yourself with renter insurance coverage. This type of protection covers so much more for a lot less than traditional insurances.

Assess the value of what you have then shop around for the right policy that suits your need.