Do All Renters Need Insurance?

Yes. The answer to that question is simply yes, all renters need insurance.  It is such a simple and inexpensive purchase for a family or individual but with it comes the ability to secure their possessions and protect themselves from massive financial loss.

Yet many renters choose to go without renters insurance. The question then becomes why? Why do some renters choose to go without insurance when the benefits of maintaining a policy are clearly worth the cost?

As with most things, people shroud renters insurance with myths that they use as excuses for not purchasing the policies. But if one takes the most prevalent myths about renters insurance and looks at them individually, then they will see that there are no reasonable excuses for avoiding renters insurance.

Renters Insurance is Too Expensive

There are many reasons that people give for not purchasing a renters insurance policy, but one of the first justifications they offer up is the cost.  While money can be tight for all renters, the reality is that most renters’ insurance premiums cost little more than a delivery pizza once a month, and many renters find the extra cash in their budget for that expense.

Cheque book

Averaging around $10 to $20 per month, most renters’ insurance premiums are extremely affordable.  And renters can lower this monthly expense even more if they opt for a higher deductible.

The Landlord Has Homeowners Insurance

This may very well be true, but the landlord’s insurance on the property does nothing for the possessions of the tenants.  Most often, the insurance policy held by the landlord is designed for the structure of the building itself, meaning that if a fire burns the building to the ground the landlord will be covered in their losses, but the items and possessions inside, which belong to the renters, will not be covered.

The landlord holding an insurance policy on the unit, therefore, does nothing for the protection of the tenants.

My Possessions aren’t Worth Much

This is one of the most common excuses for not purchasing renters insurance, but it is also one of the most misleading.  Many people believe that because they do not store much in their rental or because what they do have is not that valuable, that this means the cost of renters insurance would not be worth the recovery claim.

The truth, however, is that many people have possessions of value whether they realize it or not.  Consider the possessions in your own home; televisions, computers, tablets, beds, furniture, books, kitchen ware, etc.  If you were to go room by room and add up the value of each item in the room, you would most likely find that you own thousands of dollars worth of possessions.  It is this cost that renters insurance protects so that if a disaster does happen or a theft does occur, you, the renter, will not be out that money.

There are many more myths and excuses that renters have for not purchasing renters insurance, but the more one looks at the reasons to not have renters insurance the more one realizes that there aren’t any.  Renters insurance can help secure and protect a renting individual or family in every case and is well worth the minimal cost.

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