Renters insurance is the biggest rip-off, you say? You’re in good company, actually. 43% of renters have no insurance – and most think they don’t need it, either. It’s too costly, it’s unnecessary, or their landlord’s insurance policy will cover them. Right? Wrong. These renters insurance myths are wrong, and they are costing renters thousands of dollars in damages when disaster inevitably strikes.
Don’t believe me? Read on…
Your Ultimate Renters Insurance Information Guide:
- The Landlord Myth Debunked
- The Actual Cost of Renters Insurance
- Why Your Stuff is Worth More Than You Realize
- What Renters Insurance Does (and Doesn’t) Cover
- Getting The Best Protection Possible
The Landlord’s Insurance Myth
Oh boy. Let me just get this myth out of the way right off the bat.
“My landlord’s insurance will cover my stuff.”
So wrong. Dead wrong.
Your landlord’s insurance only covers the apartment building itself. The structure, the walls, floors, roofs, ceilings, the lobby and hallways – all of that is their responsibility. It’s actually a huge shock to most people when they ask around for a renters insurance quote from a local agent – that their landlord has zero legal responsibility to insure your belongings.
Think about it…
Say your apartment burns down tomorrow. Your landlord gets a check from their insurance company, hands over a thumbs-up to the contractors, and the new building goes up over the next few months. You? You lose everything and you get nothing. All your furniture, electronics, clothes, kitchenware, sports equipment – all of it goes in the trash. Nada.
And for what it’s worth…
It’s getting more and more common these days that landlords actually require renters insurance of their tenants. It’s because they know their insurance policy does not cover your possessions. Tired of dealing with angry, crying, fuming tenants who show up at their door after some disaster happens, many landlords just require it.
The “Too Expensive” Lie
Let me show you something really quick. What does renters insurance actually cost?
The average renters insurance premium in the U.S. is just $170 per year. Which is, like, $14 per month. That’s less than a large pizza. Less than two streaming services.
But here’s what most people think… Renters insurance is hundreds of dollars per month. It’s because they compare it to homeowners insurance (which is much more expensive) and assume renters insurance has to be in that same ball-park.
It is not. It is not even close to that.
See, here’s what you really get for that $14 per month:
- Personal property coverage (typically $20,000 – $50,000, depending on your policy)
- Liability protection (standard is $100,000, but you can always get more)
- Additional living expenses in case you can’t stay in your apartment
- Coverage even when you’re away from home
That’s a lot of bang for less than you spend on coffee each week.
The “I Don’t Own Enough Stuff” Mistake
Listen to this for a second…
Your stuff is worth a lot more than you might think.
Look, I get it. You don’t have $10,000 diamond earrings or an art collection that’s worth $100,000. You don’t have a high-end sports car in your one-car garage.
But take a second to think about the items in your apartment that would cost a lot to replace:
Your laptop? $800 – $1,500. Your phone? $600 – $1,200. TV and gaming console? Another $1,000. Now think about clothing, furniture, kitchen appliances, bedding, shoes, books…
The average renter has more than $20,000 worth of belongings.
Yup. And I think that’s low.
Even college students living in dorms have $10,000+ of belongings. Textbooks, electronics, clothes, sports gear – it all adds up real fast.
Could you replace everything if your apartment burned down tomorrow? Most people could not.
What Renters Insurance Really Covers
Renters insurance covers a lot more than people realize.
Personal Property Coverage Your personal belongings are covered whether they are stolen, burned, water damaged, or destroyed by a storm. And the cool thing? This coverage follows you wherever you go. Laptop stolen at the coffee shop? Covered. Luggage lost on vacation? Covered.
Liability Protection This is the part nobody wants to think about but could leave you broke if you don’t have it. If someone gets injured in your apartment, you’re covered. If you accidentally damage someone else’s property, you’re covered. If your dog bites someone, you’re covered.
Additional Living Expenses If your apartment becomes unlivable due to a covered disaster (fire, water damage), your policy will pay for a hotel, food, and other additional expenses while your place is fixed up.
Pretty comprehensive, huh?
The Claims Process Isn’t Scary
“I can’t be bothered with the headache of filing an insurance claim.”
Another lie. The claims process is pretty darn straightforward these days. Most insurance companies allow you to file a claim online or through an app in just a couple minutes.
And do they pay claims? Yes. They absolutely do. Insurance companies are legally obligated to pay your claim if it is valid.
Most simple claims get paid in a matter of days, not months.
What’s NOT Covered (and Why It Matters)
So, what doesn’t renters insurance cover? Well, standard renters insurance doesn’t cover everything. The good news is, most of these gaps can be addressed affordably.
- Floods and earthquakes typically aren’t covered. You need to buy a separate flood or earthquake policy. If you live in a flood plain or earthquake zone, ask about this coverage.
- High-value items typically have coverage limits. Jewelry, art, collectibles can be a problem. Most renters insurance has a sub-limit of $1,000 – $2,000 for all of these items combined unless you add a rider.
- Roommate’s belongings aren’t automatically covered. Each renter should have their own policy unless you are married or domestic partners.
Getting The Best Protection
Ok. So now that you know the truth about renters insurance…
How do you actually get the best policy possible?
Take a few minutes and go through your apartment and take photos of your belongings on your phone. A visual list makes filing a claim easier, plus it will also help you to see how much coverage you’ll need.
Shop around for quotes. Prices vary wildly between insurance companies. Don’t just go for the cheapest price – look at coverage limits, deductibles, and customer reviews.
Bundle with your auto policy. Most insurance companies give a discount if you combine the two policies. This can save you 10-20% on both your car insurance and renters insurance.
Raise your deductible if you can afford to. Moving from a $500 deductible to a $1,000 deductible can drop your premium by a lot. Just make sure you can cover that deductible if you have to file a claim.
Time to Get It Done
Truth is, renters insurance is one of the easiest, most affordable ways to protect yourself financially. For less than $15 a month, you have protection in place that could save you from losing everything in your life.
Stop falling for the lies about renters insurance.
Your landlord’s insurance doesn’t cover your stuff. It’s not too expensive. You do own a lot of stuff that is worth insuring. And it’s not hard to get coverage.
The real question is no longer, “Can I afford to get renters insurance?”
The real question is, “Can I afford to not get renters insurance?”
Get some quotes today. Compare a few options. Pick a policy that is affordable to you and which actually covers what you want to cover.
Because when disaster strikes, the difference between having coverage and not having coverage is everything.
