Renters Insurance Facts: Your Landlord Does NOT Have It Covered
Getting a post-college apartment is an exciting task for any recent graduate. From picking an apartment out to furnishing your apartment with state-of-the-art electronics and home décor that reflects your personal style, those days of living in a cramped “dump” are over.
However, one critical component you might neglect to think about when making the move to the real world is renters insurance. Renters insurance is often a forgotten insurance that can cover everything from personal property to personal liability.
Unfortunately, because of the costs and hassles associated with obtaining health and other types of insurance, young adults have many misconceptions about renters insurance including how much it costs and whether or not it’s even worth the investment. Here are four common myths and the real renters insurance facts.:
1. My Landlord Covers It
As a renter, one of the perks you enjoy is that your landlord is responsible for most repairs and maintenance tasks. While this is true, your landlord’s insurance typically only covers structural damage to the building and apartment. This means if your building catches on fire and your belongings are smoke damaged, your landlord may not necessarily be responsible for the personal items that have been damaged. If you accidently cause a flood in your apartment that damages your neighbors belongings, you may be held personally responsible. Renters insurance ensures that you, your apartment and your belongings are covered whether it is an accident, fire and even theft.
2. Renters Insurance is Expensive
While health and auto insurance can be quite pricey, renters insurance typically costs on average $15 per month. That is probably less than what you’re paying for cable and internet. And, if you bundle your renters insurance with your auto insurance, you will probably receive a discount.
3. I Don’t Own Anything too Expensive
While you may not have a lot of high-ticket items in your apartment, consider taking a quick inventory of the items in your apartment and you might be surprised by how much your personal belongings are worth. In fact, research suggests that the average renter (in a 2 bedroom apartment) owns $30,000 in personal property. Renters insurance may cover everything from your TV and laptop to your personal DVD collection and your clothes.
4. I’m Pretty Careful and Don’t Expect to Have any Fires, Accidents, etc.
While renters insurance can help protect your belongings from fire, theft and vandalism, your policy often includes legal representation and protection against liability for covered events, medical costs for visitors injured in your apartment, costs for temporary housing (as necessary) and even protection of your personal belongings when you are away.
KathyD is a guest blogger. In exchange for sharing this content, GoodHandsCommunity.org has compensated her via cash payment.