We all know that when we own our home, we need homeowner’s insurance to protect us from losses caused by fire, windstorms, hail, or similar damages. However, renters often mistakenly believe that their landlord’s insurance for the building will cover their belongings as well. Unfortunately, the landlord's insurance only covers the building and you are responsible for purchasing renter's insurance to cover your personal belongings. Read six myths about renter’s insurance.
- Myth: You only need renter’s insurance if you have a lot of possessions and personal belongings.
Fact: Although it may seem like you don’t have many possessions, you’d be surprised how much it could cost to replace all your belongings. Just think of how much it would cost to replace that new LED television you bought or even your old couch.
- Myth: Your landlord will pay for replacement of your personal belongings.
Fact: The landlord will carry the insurance that covers your apartment and other buildings, but it won't cover your personal belongings.
- Myth: Renter’s insurance will only pay for your belongings.
Fact: If something happens in your home and a friend or relative’s belongings are damaged by a covered incident, your renter’s insurance will pay for them as well. If you want to make sure this is included in your policy, look in the liability insurance section.
- Myth: Renter’s insurance is complicated.
Fact: Renter’s insurance is not any more complicated than any insurance. A good insurance agent will go over all the details and explain the policy and the options available to you. There is also a wide variety of sites online that offer valuable information on renter’s insurance.
- Myth: Buildings with good security don’t need insurance.
Fact: Regardless of how secure a building may be, things such as robberies and fires can still happen. Although security is important, and good security can lower your premiums, no amount of security can prevent a tornado.
- Myth: Renter’s insurance is extremely expensive.
Fact: The average annual cost is only about $200 per year. When you think about the thousands of dollars it could take to replace all your belongings, renter’s insurance is a steal.
The most important fact to know? Renter’s insurance is an affordable benefit that can provide you with peace of mind. If you’re in the market for renter’s insurance, be sure and shop around so you can get the best coverage at the best price.