Is Renters’ Insurance Worth it?

If you are renting an apartment or a home, then you may be wondering whether or not purchasing a renter’s insurance policy is worth your money. The simple answer is yes. Even if it is not included within the rental requirements for the property, there is a lot of value in purchasing a renter’s insurance policy to protect yourself.

What Does it Cost?

If you’re considering taking out a policy, then your first question is likely to be, How much does renter’s insurance cost? It’s easy to imagine that taking out a policy will be yet another financial burden but, on average, renter’s insurance only costs about $15 each month.

Consider the number of times you run through a fast food restaurant, or the number of times you purchase something unnecessary on Amazon. Simply replacing one of these non-essential costs each month could ensure you the safety net of having your own renter’s insurance policy.

However, if you are truly looking into the cost of the policy, then you should also consider what the policy could save you. In the long run, if you ever have to cash in on your renter’s insurance policy, it will likely result in you saving a great deal of money. We will get more into that in a moment.

What Does it Cover?

Your renter’s insurance policy covers you for a number of issues that you might run into:

• Personal Property: Your insurance covers any damage that needs to be repaired, or the costs of replacing your personal property in the event of a loss. There are going to be limitations and certain instances where this will not be available.
• Personal Liability: In the event that someone is hurt, or someone else’s property is damaged, this type of coverage protects you from having to pay for the damage.
• Temporary Living Expenses: If you are ever displaced form your home, then this type of insurance covers any additional costs until you can return to your rental home.
• Medical: If someone is injured at your rental property, then this would cover up to a certain amount of their medical expenses.

All of these coverages might seem silly when you are thinking about them now. However, if you were ever faced with having to pay one of these large bills, then you might be grateful for the opportunity to have the insurance cover those costs.

It Covers Expenses You Cannot Afford

You should think of your renter’s insurance as yet another investment into your future financial stability. If you were to lose all of your belongings in a house fire right now, what would you do? Where would you live? Do you have the money in savings to replace your furniture? Your clothing? To put down new deposits on a new place?

If you can’t come up with a watertight answer to any of these questions, then you are absolutely the perfect candidate for renter’s insurance. It is a great way to invest in your future and make sure that an unexpected obstacle does not spiral into a long-term setback. There are plenty of what-ifs and worst-case-scenarios in the list of things your emergency fund should be designed to cover, but the cost of rebuilding your entire life needn’t be one of them.

Bundle it with Another Policy

In some cases, you can actually get a discount for bundling different types of insurance into one policy. If you already have a pet insurance policy, then you might be able to bundle the two policies and get a discount for both. In fact, in some cases, people are able to bundle the two different prices and get an entirely lower price for both policies than they were paying for the one policy.

Final Thoughts

Renter’s insurance is not an expensive investment, nor is it an unwise purchase. Actually, purchasing renter’s insurance is a great way to make sure that you do not wind up needing to overcome a financial crisis. If you know that you cannot afford a small emergency, then you should also know that you have no business leaving yourself vulnerable to a huge emergency. Instead of praying for the best, buy a policy to protect yourself now.

When you take into consideration the amount of money that you might be able to save yourself with the rental insurance policy, then you can see how beneficial it is to have a policy in the long run. Be smart and protect your wallet from a financial disaster. The low cost of renter’s insurance makes the purchase worth the protection from monumental damage.