If your landlord doesn’t require you to have renters insurance, wouldn’t it just be better to pocket the expenses? What sense is there in investing in an insurance policy when living in an apartment, house, or duplex owned by someone else? Unfortunately, there are a lot of misconceptions about renters insurance that result in residents not obtaining proper coverage for their belongings, leaving them vulnerable to severe financial repercussions. That’s why it’s important to debunk these common renters insurance myths.
1. My Landlord Has Insurance, So I’m Covered
While your landlord has insurance, its coverage only protects the rented property. In the case of a fire or flood, the landlord’s insurance is responsible for repair or reconstruction costs, but you’re responsible for all of your lost belongings. Not only will you be on the hook for your personal property but also for the costs of temporarily relocating while the repairs take place. However, with renters insurance, you can ensure your belongings and the cost of temporary living expenses are covered.
2. My Belongings Are Not Valuable Enough to Insure
Even if you’re a minimalist, when you write out your home inventory, it’s easy to see that the value of your belongings can add up quickly. You have to consider your TV, computer, bed set, gaming system, and everything in between. When you think about having to replace all of those items, it can carry a hefty price tag. That’s why it’s important to have renters insurance. Although, even if you have a policy, it’s always safe practice to keep your home inventory up to date, including pictures of your property.
3. Neither I Nor My Guests Partake in Risky Behaviors
Although you may not have any torch jugglers over for dinner, that doesn’t mean your home is not at risk of disasters. Not only is the property susceptible to destructive acts of nature, but if you live in an apartment complex, what your neighbors do can also increase the risks of an accident. They might use an old space heater or burn candles, both of which can create problems for their neighboring renters if not properly handled.
4. Renters Insurance Only Covers My Belongings
As briefly mentioned, your renters insurance will not only cover your belongings, but it will cover your living expenses until the property is habitable again. This is referred to as “loss of use protection,” which will compensate you for the costs of a hotel room, food, and other necessities. Also, renters insurance includes medical and liability coverage. If you’re responsible for damages to the rental property or injuries to guests, you’ll be covered for the ensuing repair, legal, and medical costs.
5. Renters Insurance is Expensive
Many renters picture the cost of renters insurance mimicking that of homeowners insurance, but that is far from true. The average cost of renters insurance in Massachusetts, according to Business Insider, is only $194. That’s only $16 a month – practically the price of a large pizza. It’s a small price for all that the policy covers. Also, to increase savings, some insurance carriers will provide you a discount for bundling your renters insurance with your auto insurance policy.
Realizing the truth about these common renters insurance myths will give you the confidence to invest in a policy without unnecessary reservations getting in the way. Now that you recognize the importance of renters insurance, you’ll want to purchase the right policy. At TJ Woods Insurance, our team of experts will be able to find you the most appropriate policy for your needs. If you would like to find out how to protect yourself and your belongings when living in a rented space, contact us today.
