We previously have discussed the rising trend of required renters insurance, but plenty of people are still without insurance. In fact, a 2012 Insurance Institute poll conducted by ORC International found that while 96 percent of homeowners had homeowners insurance, only 31 percent of renters had renter insurance.Getting renters insurance may seem like a hassle to many, but it's truly worth the extra effort.
So what are some of the biggest misconceptions about renters insurance?
1. My landlord's policy will protect me. This is a widely adopted assumption that is mostly untrue. A landlord's insurance policy will cover his or her property and possessions, which is made clear in lease agreements. If damages are the fault of the landlord, like a fire started by faulty electrical wires, then you might be eligible for compensation. However, that's after a lengthy court process.
2. It's too expensive. This is probably the biggest misconception. Renters mistakenly believe that they will need to shell out thousands upon thousands of dollars to protect their belongings, but the National Association of Insurance Commissioners puts the average price of renters insurance at around $15-$30 a month. The cost depends on location and other personalized factors, but it's still a small price to pay for a solid protection.
3. I don't have any valuables to protect. You might think to yourself, well I don't really have that much stuff of value. Think again. Do you have a computer? A phone? Jewelry? Sports equipment? Dishes? Now it's all starting to add up. While policies vary, most insurance plans cover from $10,000 to upwards of $100,000 worth of property. In many cases, coverage may even protect you from legal and medical fees if someone gets hurt in your apartment.
Renters insurance is the best way to protect your property and ensure that you have proper coverage.
