How Can Renters Insurance Save You a Ton of Money?

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In a world full of unpredictability, renters insurance can serve as a valuable resource in providing protection for one’s assets. While some precautions can be taken to prevent damage to a renter’s possessions, the possibility of traumatic events, such as theft or a fire, must always be considered. Purchasing renters insurance prior to such an occurrence is an effective way to protect the value of your assets and save a great deal of money in the long run.

Renters Do Not Know the Value of Their Possessions

One of the most important aspects in considering the purchase of renters insurance is an understanding of the true value of your belongings. According to an article from U.S. News & World Report, it is common for many renters to underestimate the actual worth of their possessions. Renters think of the larger items they own as valuable, and they tend to neglect the personal value that may be tied to some of the smaller items that they possess. People often look to electronic items, such as televisions and computers, as their more valuable possessions. The smaller items however can quickly add up. The totaled value of collection items, such as clothing, dishes and jewelry, can carry a substantial price tag that may warrant the purchase of renters insurance for their protection.

The article also notes that many renters tend to wrongfully assume that their possessions are protected under their landlord’s policy. While these policies may provide coverage for any damage to the building itself, the majority of them will not include coverage for damage to a renter’s personal belongings. For example, a fire in an apartment building may result in damage to furniture and appliances within one’s unit. Renters insurance would be necessary to provide coverage for the damage inflicted upon these personal items. It is important for individuals to know which property damages are covered under their leasing terms in order to understand the true value in purchasing renters insurance for themselves.

Two-Thirds of Renters Are Not Covered

In a May 2012 survey, the New-York based Insurance Information Institute noted that only 31 percent of U.S. renters had opted to purchase renters insurance. While the idea of an insurance payment may seem daunting, the bill may be more affordable than people often believe. The New York Times notes that renters insurance often costs less than people initially assume. According to the article, the cost is around $300 for a basic policy that provides $50,000 worth of property protection. Imagine the value of this small payment in comparison to personally covering the cost of damages to the numerous possessions housed within your rental property.

Prepare yourself for the unexpected situations in life by purchasing a cost-effective renters insurance policy. Consider the value of your personal belongings not only in regards to their dollar value, but also in regards to their importance and worth to you personally. With renters insurance, you will not only save money in the case of an issue arising, but you will also find comfort in the knowledge that your possessions are always protected.