The tornado in Oklahoma drove home a hard reality–you never know when your life and your possessions will be at risk from a natural disaster. You see this every year when you watch natural disasters like Hurricane Katrina and Hurricane Sandy unfold. Yet, you likely always think it won’t happen to you.
Likewise, if your neighbors’ house is burglarized, you’ll likely feel bad for them and you may worry a bit, but you don’t think the same think will happen to you.
Perhaps this sense of denial is a good thing. After all, if you look at bad things happening around you every day and you don’t remain in denial, you would worry constantly. That’s no way to live.
However, you should make the proper steps to protect yourself, so if the worst does happen, you’ll be okay.
If you’re a renter, that means you should have renter’s insurance.
The Common Excuses for Not Buying Renter’s Insurance
I know, I know, you may argue that you don’t have anything of value in your apartment, but I’d beg to differ with you. You likely have a television, perhaps a video game set, a stereo, a full wardrobe, jewelry, a bed. . .the list goes on and on.
Imagine for just a minute that you leave home and a fire breaks out. You’re left with nothing but what you’re wearing that day. Now do you still think you have nothing of value?
Rental insurance would provide you money to replace those items, especially if you opt for replacement cost coverage, which covers the cost to buy a new item. Even though your couch might have been 8 years old, you’ll get enough money to buy a new couch. The other option is actual cash value, which I wouldn’t recommend. In that case, you’ll maybe get $100 for your 8 year old couch, which won’t get you very far.
Another common misconception is that your landlord’s insurance policy will cover you. In truth, your landlord’s policy only covers the building. You’re responsible for covering all the items inside your apartment.
Renter’s Insurance is Cheaper than You Think
You might also be hesitant to buy renter’s insurance because you feel you don’t have enough money for the yearly premium. However, renter’s insurance is one of the most affordable insurance policies to buy.
We live in the suburbs of a major city, and we only pay $115 a year for replacement cost renter’s insurance. Our premium is a bit lower because we’ve not filed any claims and because we bundle renter’s insurance with car insurance. Still, at less than $10 a month, this insurance is a steal.
If you’ve been putting off getting renter’s insurance, now might just be the time. It’s affordable, and it can give you peace of mind in the event of a tragedy.