Is renter’s insurance worth the cost

In my opinion renter’s insurance IS worth the cost, mainly because it’s super cheap, but protects you if your rental say burns down, is broken into, or you have some other emergency situation happen.Your rental landlord most likely has insurance but landlord insurance tends to cover stuff like structural damage to the building but for sure won’t cover your personal property.

is renter's insurance worth itIf you’re thinking you don’t need renter’s insurance because you have few valuables you’re most likely wrong. You don’t need gold statues to benefit. Renter’s insurance can be set up to cover electronics, clothing, albums, and more. Your whole clothing collection and your TV cost way more to replace than insurance will cost you.

What will a policy cover?:

Most of your home goods. A basic renter’s policy will not usually cover natural disasters like a major flood though. You’ll need to look into extra insurance for that. Talk to an insurance company to get an idea of what is and is not covered. It’s helpful if you create a good home inventory list before shopping for insurance because this list can help an insurance agent find you the best coverage for your needs.

How much does it cost?

I’ve had renter’s insurance at many different dwellings and it’s always averaged around $20-30 a month, although I know it can go as low as $15 a month. If you lose all your possessions in a home crisis, it’s going to cost you far more than that yearly fee of about $300. Plus you can get usually get a discount if you double up your insurance; for example, if you get auto and renter’s through the same company. You can also usually get discounts if your home has fire or burglar alarms, fire extinguishers, sprinkler systems, or deadbolts.

Of course discounts don’t always come easy so be sure to shop around.

What do you think? Do you have renter’s insurance? Why or why not…

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    • Nilz

      I do not have much idea about most of the Insurance Plans. However, this looks like a good plan. Anyway, I may be looking for a website which compares different insurance plans.

    • Amy

      For us it is totally worth it. We got our policy through our car insurance agent. It actually made the whole policy $3 cheaper per month than not having it. Even if you do have to pay a small cost per month it it worth it because it covers so much more than the items inside your home. With our policy it covers the things that aren’t covered by you car insurance like if you child damaged the neighbors car with their bike. I really like the fact that we are covered for just about anything that can happen.

    • Adam Nelson

      I’m not sure renters insurance is worth it. If you don’t get replacement value insurance, you’ll get nickel and dimed with depreciation. I just did a Liberty Mutual quote. With a $1k deductible, I’m talking about $45/month for replacement value insurance – that’s $550/yr.

      Flooding from plumbing is NOT covered. Jewelry over $1k is NOT covered (it would be for $30/month more at up to $4k).

      It seems to me that the insurance is only worth it if you’d be obliterated by an accident. If I had a fire, I’d be $15k in the hole without insurance. With insurance, I’d be $1k in the hole with about $3k worth of hassle. The real terrible thing would the loss of pictures and stuff …

    • Jennifer Chait

      That’s true. Some policies cover lots of extras making it even more worthwhile.