7 Myths About Renters Insurance
RENTING? DON’T BE PART OF THE UNINSURED MAJORITY
According to the Insurance Resource Council around 50% of renters in this country bet that they’ll never have a fire, burglary, or theft from their car. They have decided not to purchase renters insurance to protect their personal property and liability.
Renter insurance covers your stuff like appliances, clothing, furniture and computers as well as other electronics. It normally covers your possessions both in and outside the home or apartment (including belongings in your car) and offers liability protection if someone is hurt in your home. Liability protection also goes with you if you travel around the neighborhood or around the world. Although it’s been around for years, misconceptions about renter’s insurance abound. Here is a list of some of those most common myths.
Top seven myths about renter insurance:
It’s expensive. The top reason most say they don’t get insurance is that it cost too much. In reality, renters insurance is probably the best deal of the insurance industry. The average renters policy will cost somewhere around $25 per month.
It doesn’t cover much. On the contrary, most renters insurance covers a wide variety of items. Most common are theft, fire, windstorm and electrical surges and maybe most importantly will cover liability also.
My landlord already has insurance. While it may be true that your landlord has coverage on his property, most likely there will be zero coverage for your contents or your personal liability.
My auto policy covers property stolen from my car. Most likely your auto insurance only cover items attached to your vehicle. This will leave things like laptops, tablets, handbags, packages just purchased from the store and other similar items unprotected. This is doubly important to renters as statistics show that they are twice as likely to have their vehicle broken into.
My belongings aren’t worth much. Most people, including renters normally underestimate the value of their stuff. A normal renter will have more than $25,000 in personal property. It is also important to remember that most renters insurance will have replacement cost coverage. That means that most everything you have will be replaced with brand new items. If you want to take inventory of your stuff, we suggest these apps/sights.
I’ll never get sued. Nearly everyone who has ever been sued has thought exactly the same thing. Renters insurance will apply to common at home incidents like slip-and-fall injuries inside your apartment. It will also cover you miles from home while at the ballpark or the grocery store.
The person on the other side of the wall is insured. Based on what we learned earlier odds are that’s not true. That means if your neighbor has a fire or water backup that damages your belongings, you’re the one who gets stuck paying to replace these items.