According to a recent survey, only 34 percent of Americans who rent their homes or apartments have renters insurance. In other words, almost two in three renters lack any type of insurance coverage. Some renters may assume insurance is just for homeowners, but that’s just the first in a series of myths and misconceptions about renters insurance.
If you want to protect yourself from falling victim to theft, fire, certain severe weather events, or any other type of unexpected calamity that might occur at your rental apartment, then you need to separate the facts from the myths when it comes to renters insurance.
Myth #1: Renters Insurance Costs Too Much
One of the biggest misconceptions about renters insurance is the cost. People often assume coverage is far more expensive than it really is, and this deters them from considering getting renters insurance. According to the survey, 60 percent of the respondents said renters insurance cost $250 a year, and 21 percent guessed that it cost $1,000 or more. The average policy, however, is priced at $185 a year, according to the National Association of Insurance Commissioners, which amounts to $15 a month.
Myth #2: My Place Has Good Security, So I Don’t Need Renters Insurance
Many people say their apartment or rental home has a good security system, and therefore they don’t invest in renters insurance because they don’t feel that they need it. However, even good security is not a guarantee. At the same time, renters insurance covers more than just theft. It may also protect your possessions from fire and some severe weather events.
Myth #3: I’m Covered By My Landlord’s Insurance
Many renters claim they don’t need renters insurance because their landlord already has insurance. Despite the fact that 48 percent of the people surveyed believed that, it’s a misconception. The landlord’s policy protects the landlord; it covers the structure of the rental property but it does not protect your possessions. If a fire destroys the walls in the rental apartment, the landlord will probably be covered. However, if that same fire destroys your couch, TV, or some type of valuable heirloom, the landlord’s insurance does not cover the damages.
What happens if the damage caused by the fire is so severe that you can’t stay in your rental home? If this is the scenario you’re faced with, then the landlord’s insurance policy won’t help you on that count, either. However, if you have renter’s insurance, it might help pay for your temporary lodging, depending on your policy.
Life is filled with unexpected events, so the best thing you can do is be prepared for them. If you’re looking for renters insurance, you may want to shop around and get a quote. Many car insurance companies offer renters insurance, too, and bundling the two policies can help save you money.
This guest post comes from the editors of The Allstate Blog, which helps people prepare for the unpredictability of life.