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What Is Renter's Insurance, and Is It Worth It?

One of the things that most renters don't think about is insurance. After all, one of the perks of renting is that you don't have to worry about things like home insurance, etc., that are typically the responsibility of the property owner.

However, most renters don't understand that when they rent a home, their personal belongings aren't covered in the event of damage. Rental properties share all of the same dangers of peril as any other home. Fire, lightning, hail storms, flooding, sinkholes, and explosions are just as possible when you're renting as when you're not.

Additionally, if you're renting in a multi-unit dwelling, your chances of experiencing a tragic event with the possibility to damage your personal belongings becomes even greater.

No matter how careful YOU are, you can't ever know how careful your neighbors are. You don't know that they're putting out cigarettes, checking the stove knobs, unplugging the coffee pot when they leave the house, or unplugging irons like you do. They may leave sinks on with running water, causing you to experiencing a horrible leak over your head that leads to water damaged property. So the chances of you losing all of your belongings in a multi-unit structure greatly increase.


So the Question...What Is Renters Insurance Exactly?

Let's first get down to the bare bones about what renter's insurance actually is.

It's actually quite simple. As a renter, you don't own the home. Therefore, you can't purchase insurance on the building or the structure of the building. The type of insurance that the owner of the property has will either be a landlord insurance policy or, more commonly with a rental property, a dwelling insurance policy.

Therefore as a renter, you very likely want to protect your belongings. After all, you've worked very hard to acquire the things that you have, so it’s understandable that you want to keep them safe.

So now that you know the answer to the question of, “what is renters insurance,” the next question you might have is...do you need it?


I Know What Renter's Insurance Is, Do I Need It?

It’s true that many renters don’t even know what renter’s insurance is, but it’s just as true that there are plenty of renters who, despite knowing what renter’s insurance is, still think that they don’t need it.

The fact is that nothing could be further from the truth. There are some factors that you may not realize that could change your mind about not needing renter’s insurance. Now that you have the answer to “what is renter's insurance,” it's time to realize why you truly do need it.


Your Belongings Are Probably Worth Much More Than You Think...

Sometimes we underestimate how much we own as renters. Chances are you’ve probably collected a pretty penny's worth of stuff over the years.

Statistically, the average person has about $20,000 dollars in personal property. Just think about everything you own from your furniture, television, appliances, desktop computer, laptop, phones, musical instruments, books, etc. All that stuff begins to add up very quickly. Of course that's for a typical single person. Add a couple of family members to the mix, and now you've got quite the hefty sum of personal belongings.

Don't underestimate what you own. Think about how absolutely tragic it would be to lose everything in a fire and have to replace every single item out of pocket.


You're More Likely to Need Renter's Insurance Than You Might Think...

We all walk around with a dangerous “it'll never happen to me” attitude. But the statistics tell a different story, especially if you're a renter.

In fact, as stated above but worth re-iterating, you're more likely to experience a tragedy when you rent than when you own. We've already talked about fires some, but let's dig a little deeper.

According to the National Fire Protection Association's website, there were a reported 95,500 apartment structure-fires in the US in 2011. That number is up by 5,000 from the year before.

The property damage totaled more than $1 billion.

But that's not all...

You should also want to be protected if your apartment is burglarized or hit by vandals. The facts state that 2 million homes are broken into each year. As a renter you're just as likely, if not more so, to have your home broken into, so you need ample protection.


If You're Put Out of Your Home from Damage, Your Insurance Will Cover Your Costs...

You may have come to this blog post simply asking, “What is renter's insurance,” but now you're about to find out that if something does occur causing you to have no place to stay and you're forced into a hotel, your insurance could cover those costs as well.

Chances are that when something like a fire or serious flood happens, your home will not be in livable condition afterward.

This means that you'll be forced to make alternative living arrangements, which isn't always easy and is almost never cheap. It can be very expensive to stay in a hotel, especially for nights on end.

This is another reason why having renter's insurance could be a very smart thing to have. It can save you from a ton of heartache. When you lose everything including a place to lay your head, having someone cover those expenses can literally save you. You'll still need to work to keep your job, and to be able to work you'll need somewhere to sleep, eat, and get ready.

If you're still wondering, “what is renter's insurance,” or are unclear on anything that this blog post has covered and you'd like to ask an expert, call now at: 1-800-919-FIRE.