More and more landlords are asking their tenants to have renters insurance, and it’s easy to see why. It helps protect the landlord from expensive accidents, like a visitor getting hurt or a tenant’s stuff getting damaged. But is it a good deal for you, the tenant? In short, yes. It’s cheaper to replace your stuff with insurance than without it.
Sure, renters insurance isn’t free. A basic policy with high deductibles and low coverage limits can cost around $150 to $200 per year. More comprehensive coverage can cost $300 to $500 or more per year. So, if you’re not required to have it, you might wonder if it’s worth it. But just because you’re not required to have it doesn’t mean you shouldn’t.
Here’s why you should consider getting renters insurance:
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It might be required: Many landlords require proof of renters insurance. If you don’t want to get it, you can still find a place to live, but you might have fewer options and might have to compromise on things like size, amenities, or location. Given the relatively low cost, it’s worth it to get renters insurance to keep your options open.
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Your stuff is valuable: Even if you don’t live a lavish lifestyle, your stuff is probably worth more than you think. Things like your TV, computer, small appliances, other electronic devices, furniture, clothing, jewelry, books, and personal items can add up. Replacing all of these items could cost thousands, maybe even tens of thousands of dollars.
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Your landlord’s insurance doesn’t cover your stuff: Your landlord’s insurance covers the building and any appliances or furniture they provide, but it doesn’t cover your stuff. Even if something happens that’s not your fault, like an electrical fire, you’re responsible for replacing your stuff unless you have renters insurance.
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It can cover stuff in your car: A lesser-known benefit of renters insurance is that it can cover personal belongings in your car.
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It covers your stuff when you’re not home: Renters insurance can cover your stuff when you’re not home in two ways. First, it covers stuff left in your apartment when you’re not there. Second, it can cover your stuff when you’re traveling, whether you’re just out and about in your neighborhood or on vacation far away.
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It can cover living expenses if you’re displaced: Many renters insurance policies cover temporary relocation and living expenses if your apartment becomes unlivable due to something like a fire, flood, or structural damage.
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It protects you from lawsuits: If a guest gets hurt in your apartment or if you cause damage to other units in your building, your renters insurance can cover the cost of a lawsuit, legal fees, and medical bills.
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It’s not that expensive: Compared to other types of insurance, renters insurance is relatively cheap. Plus, you can often bundle it with other types of insurance for a discount.
Of course, there are reasons you might not want to get renters insurance. It does cost money, which could be a problem if you’re on a tight budget. And if you don’t own much stuff and have a good emergency fund, you might not need it.
But overall, it’s better to have renters insurance than not. It doesn’t cost much, it protects your stuff, and it can save you from expensive lawsuits. It can even cover you when you’re traveling.
In the end, the peace of mind that comes with having renters insurance is relatively cheap. But it still costs money. If you’re struggling to afford it, consider cutting back in other areas. Maybe buy generic groceries instead of name-brand ones, eat out less, or cancel subscriptions you don’t use much. You could even consider moving to a cheaper city, where both rent and renters insurance are likely to be cheaper.
