9 Renters Insurance Truths and Fictions
Renters insurance comes in to save the day if your stuff is stolen, damaged, or lost in a break-in, fire, water leak, or other natural disaster. A renters insurance policy is also there for you in case someone is hurt at your place because it covers medical and legal costs. Although this may seem simple, there are still some big misconceptions about renters insurance out there—and it’s our job to fix that. Here are the top truths and myths about renters insurance:
#1: My landlord will pay for my stuff if it’s ruined or stolen.
We hate to tell you otherwise, but this just isn’t true. All that landlords are responsible for is the shell of the building. They’ll have their own property insurance for that, but your own stuff is up to you.
#2: Meh, I don’t think I need renters insurance.
This is a big myth! Think about what would happen if a thief raided your apartment or a fire demolished the whole building. All of your belongings would be toast and you’d be left with the bill of paying to recover everything. Since fires happen every 90 seconds and a burglar ransacks a house every 15 seconds, there is a chance this could happen to you.
“Average renters insurance policies are only $15 a month.”
#3: Renters insurance claims aren’t common.
Unfortunately, this just isn’t true. For instance, Nationwide has settled more than $184 million in renter’s insurance claims since 2008. That also averages about $4,000 per claim. Would you be able to afford $4,000
#4: My dog/cat is friendly.
That may be so, but dog-related injuries add up to about $1 billion annually in America. Animals are animals are sometimes their mistakes can cost you!
Shop affordable renters insurance.
#5: It costs too much to buy renters insurance.
Lucky for you, this isn’t true! Renters insurance is only about $100-$200 annually. You can even save more with a multi-policy discount (if you have more than one insurance plan with your carrier) and based on how much you insure and where you live.
#6: My friends don’t have renters insurance.
This is actually statistically true. Just 37% of renters had renters insurance in 2014. Although, this doesn’t mean you should go without it due to many of the risks we’ve listed above.
#7: My roommate bought renters insurance, so that means I’m covered.
If you have auto insurance and your friend is driving your car, that doesn’t mean they have auto insurance too. The same goes for renters insurance. Unless you’re on the policy, you aren’t covered.
#8: My stuff isn’t worth that much, so I don’t need renters insurance.
Your belongings probably add up to more than you think. On average, renters have $3,000 worth of clothes and more than $20,000 in possessions. Would you be able to replace that all on your own if your stuff is destroyed?
#9: My heirloom jewelry is safe with my renters insurance policy.
Renters insurance only allocates about $1,500 toward expensive items like jewelry and art. Talk to your agent about adding an additional rider if you have pricey belongings that need coverage.
There you have it: the top renters insurance myths and facts. Use this new knowledge to protect yourself from the unexpected and to help inform others if they are out of date with their renters insurance know-how.