Renters insurance is a form of property coverage that protects a policyholder’s personal belongings within a rental property. When renting an apartment, many tenants wrongly assume that their landlord’s insurance coverage protects them from damages. This is one of the many myths associated with renters insurance—myths that may cause some tenants to avoid coverage altogether.
This can be costly, and it’s important to understand some of basics of a renters insurance policy before making a decision.
4 Myths About Renters Insurance
1. Renters insurance only covers your possessions. Renters insurance typically includes liability protection in addition to standard property coverage. This is important in the event that you are responsible for injury or property damage to others. For instance, if someone slips and sprains his or her ankle at your apartment, you are likely to be protected under a renters insurance policy.
2. It’s unaffordable. In actuality, renters insurance is very affordable for the average tenant. While policy prices will vary, most tenants can receive up to $25,000 of property coverage and $100,000 of liability coverage for about $16 per month. For more savings, some policies offer discounts to those who add renters insurance onto existing coverage.
3. You only need renters insurance if you own a lot of expensive items. Personal property values can add up quickly. To demonstrate this, tenants should take an inventory of their belongings. When you start adding up things like furniture, laptops and televisions, the importance of renters insurance can become a bit more apparent. When considering renters insurance, it’s important to keep in mind that items like collectibles and antiques may be out of the scope of traditional policies and that special coverage may be required.
4. You don’t need renters insurance if your roommate has it. Renters insurance only protects the policyholder’s personal belongings. In the event of a fire of theft, you will have to recoup any losses if you are without some sort of coverage.
Like any insurance policy, it’s important to take your unique situation into account before committing. Contact Moller Insurance Ltd. today for more information.