For a lot of individuals, renters insurance is first talked about in college when students go to rent an apartment or house. Landlords might suggest it to them but not require it.
If you aren’t living with your parents and commuting to school, then chances are you are renting an apartment. Now that you are out on your own, paying your own bills with the crisp plastic credit card or cold, hard cash, you should HIGHLY consider renters insurance. Sure, you double and even triple check that you locked your door, and your valuables are tucked out of sight. However, what you cannot control is what your neighbors or roommates are doing. Sure, your neighbor is quiet and you roommate is super chill, but everyone is forgetful and what happens when someone accidentally leaves the stove on and something catches fire? Now don’t be afraid of your neighbors; just know that everyone is human and makes mistakes. Compensate for the mistakes of others by getting renters insurance.
It is fairly inexpensive. Depending on various factors, it tends to be around $10-15 per month or around $150 a year at Pekin Insurance. This isn’t a quote by any means. You can only get a true quote by calling your agent, and typically, renters insurance can be combined with your auto insurance. I certainly hope your apartment building doesn’t go up in flames, but should it happen, could you replace everything you own at the drop of a hat? Renters insurance is there to help you in case this happens, reimbursing you for all your covered items.
I don’t own enough stuff.
Many individuals think they don’t have enough stuff to need renters insurance when in fact, to replace everything they have would cost thousands. From your socks, underwear, clothing, bedding, computer, television, plates, forks, food, and more, it would add up quickly. If you just stand in your closet and think about how much you spent on all your clothing, I’m sure it would add up to a couple hundred at least. Sure, maybe you could rebuy all your belongings over time, but who has time to wait when a fire doesn’t come at a convenient time? What if it’s the middle of winter, and now you need a new winter coat and everything that goes with it? An average two-bedroom apartment can have about $30,000 worth of inventory that would need to be replaced, if not more.
My landlord has me covered.
Well, I hate to break it to you, but your landlord is not your sugar daddy. A landlord has insurance to cover the building and its structure, but they are not paying money to keep your stuff covered as well. They are concerned about their investment, not yours. Even if the landlord provides you with a refrigerator, if the power goes out, and you lose all of your food, the loss of food falls under your renters insurance because you lost personal property. Now if the fridge cannot be fixed, typically, the landlord would replace it since he is liable for the equipment.
Not only does renters insurance cover your stuff, but it also covers any damage you cause to other apartments. If your bathtub overflows and seeps into the apartment below you, ruining anything, then you are liable to pay. However, your renters insurance will cover the damage up to your limit of liability.
Nowhere to go?
So bad luck hit you, and your apartment is damaged so heavily you won’t be able to live there for a few days. Where do you go? Well, with renters insurance you can get coverage for temporary living expenses, for a set period of time, depending on your coverage. As always, it is good to know what coverage you have.
Where is this covered?
Say you live in a decently safe neighborhood, so you leave your laptop in your car. One night a thief walks by your car and sees the laptop. Breaking a window, he or she grabs your laptop and runs, then you wake up the next morning to find your car damaged and laptop gone. Now while your auto insurance should cover the broken window depending on your policy, personal possessions typically do not fall under auto insurance. Instead, your renters insurance could pick up the ticket for the laptop.
It costs around the price of eating out, so by cutting back just one time of eating out per month, you can afford the peace of mind in case anything happens. Renters insurance covers so much more than many individuals know or think, but hopefully now you see why it is important to have it for your apartment or house, even in college.