Do I need Renters Insurance?
Wondering if you need renters insurance? Wondering what it will cover? Maybe you are wondering how much coverage you need? Bill Nickels Insurance has the answers for you! If after reading this article you still have questions feel free to call us at 931-728-9623!
First lets talk about what renters insurance actually is: "Renter’s insurance protects your possessions if they’re damaged, vandalized, or stolen while you’re renting." (Ramsey) This means if you do not own your own home and pay someone else money to stay there then you need renter's insurance. The landlords insurance only covers what they own like the roof or windows, but your property like a laptop is not covered. If you do not have renters insurance and say the house were to burn down that you are renting. Your landlord would be able to file a claim for the brick and mortar building while you are out thousands of dollars for your jewelry, electronics, etc.
That being said personal property is not all that renter's insurance covers. It also covers accidents that happen in your apartment or home like if someone smashed their finger with your bathroom door and their finger broke. Your rental insurance could cover their medical bills (hopefully they wouldn't sue you though). Also if your dog were to bite someone in your home or any other accident that happens while you are renting would be covered under your Renters insurance as liability.
Rental insurance will cover additional living expenses as well if your apartment burnt down and left you no were to go. It would also cover new clothes and food while you found a new home (Ramsey). Most Renter policies will cover theft of your property from anywhere whether that be from in your car or if you were walking your dog in the park and someone stole your back pack. You can also talk to your insurance agent about whether or not your renters policy would cover a portion of your storage unit you may have (Ramsey).
Now with all that being said you may still be wondering, "So should I get renter's insurance?" Unlike auto insurance, renter's insurance is not required by law (although some landlords may require it) so you have to decide for yourself. The questions you can ask yourself are "If my apartment burns down can I afford to buy all my belongings again?" "Where will I stay if something were to happen to my apartment?'' "If someone gets hurts in my apartment, can I afford their medical bills?" Once you answer those questions you will then have your answer of whether or not you should obtain renters insurance.
Now the next question is money. How much does it cost? Renter's insurance is usually really cheap. The average premium is $17 per month (Ramsey). It usually is a no brainer to go ahead and get your belongings covered. The next question is "How much coverage do I need?" Usually you will be told to take an inventory of your belongings and tally up the amount that all of it is worth. You could also ask yourself, "If I lost everything how much money would I need to get back on my feet?" (Ramsey).
Have more questions? Call us at 931-728-9623!
Ramsey Solutions. “Do You Need Renter's Insurance?” Daveramsey.com, Ramsey Solutions, 30 June 2020, www.daveramsey.com/blog/do-you-need-renters-insurance.