When I moved out on my own after college, one of the first things my mom asked me was this: “Did you check out how much renters insurance is going to cost?”
Truth be told, I didn’t even know what renters insurance was, let alone how to buy it, and my fiscally-responsible mother’s question made me immediately assume that it was going to be yet another high monthly bill to pay.
In my state, renters insurance isn’t required, so my landlord hadn’t mentioned wanting to see proof that I had a policy. I wasn’t thrilled at the prospect of yet another bill to manage with my monthly budget, especially if it was something I didn’t really need.
But the apple doesn’t fall far from the tree, so I listened to my mom and called my car insurance company to see what the big deal was.
I was prepared for a high number that I couldn’t afford. I was prepared for an explanation that would leave me luke-warm as to actually wanting this insurance in the first place. I was prepared to hang up the phone and go about my life without a policy. I was wrong.
What Renters Insurance Does
First of all, I had no idea what renters insurance was, so it was an eye-opening phone call. Renters insurance’s main purpose is to help you replace your belongings if they are damaged or destroyed by some kind of accident (fire, flood, etc.), vandalism, or theft. Your landlord’s policy only covers the actual building and property. Basically, if your landlord doesn’t own it, his or her insurance won’t cover it.
You might not own anything expensive. I sure didn’t when I moved into my first apartment. But all of your stuff…it starts to add up. Let’s say that your apartment building burns to the ground (hopefully that never happens to you, but let’s just pretend that’s the scenerio).
Would you have the cash on hand to buy new clothing, furniture, electronics (computer, tv, etc.), kitchen equipment, toiletries, books, and whatever else was in that apartment before the fire? Few of us do.
That’s where renters insurance kicks in. Your insurance company will foot the bill so you can start to put your life back together after something happens that was out of your control.
Renters Insurance Protects Others
That’s not all, though. Renters insurance also offers protection if one of your guests is injured and decides to sue you. If your visiting second cousin trips over a cord and breaks his leg, do you have enough money to pay for his medical bills? Again, few of us do.
Renters insurance protects you if something like that happens through liability coverage. Some landlords require you to carry this kind of insurance, since otherwise, they might find themselves tangled in a messy court case over who is going to foot the bill.
How Much is Renters Insurance Per Month?
My major concern with purchasing renters insurance, however, was the cost. Sure, it’s something that would be nice to have, but I assumed that I was just going to have to take my chances without this kind of policy.
It’s certainly a risk to be a renter without renters insurance, but at the same time, in the years after college, it isn’t exactly easy to afford yet another bill.
Once again, I was wrong. The national average for a renters insurance policy is only $15 – $20 per month. That’s really cheap insurance …less than I spend on coffee.
And really, there are a ton of things you can do to lower that cost even more. For example, I get my renters insurance through the same company that does my car insurance, so I save money there. I also mentioned that there are smoke detectors in my house, and other safety items like deadbolts and security alarms can also bring down the cost.
This is stuff that you might have to talk to your landlord about installing, but most landlords are happy to pay for it, since it means their insurance costs could go down too.
What I Pay for Renters Insurance
In all, I pay less than $10 per month for my insurance. That’s it! I do live in an extremely safe neighborhood, so that’s a factor you might not be able to control, but no matter where you live, you won’t be cringing at the number.
Some insurance companies will even give you a price break if you can manage to pay for a year in advance, rather than paying by the month.
To me, peace of mind is totally worth a few bucks out of my pocket. Also, take the time to read your policy carefully. You might have some awesome benefits! For example, if my camera is stolen while I’m on vacation, it’s covered under my renters policy.
Every insurance company is different when it comes to what they offer, so you have to take the time to read the fine print, but you’ll be glad you did.
This guest post is from Allison Boyer, who works with www.RentersInsurance.org, where you can go to learn more about this topic.
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