I know the feeling, I’ve been there before. You’re finally out on your own and you get your first apartment. Ok, $650 each month, utilities are probably around $80 and cable/internet will be $75. “Got it, I can handle this”, you say. Then it hits you, someone mentions renters insurance…huh? Is that something I really need? Seems like a hassle, just one more thing to keep up with. The truth is that if you rent, you are foolish not to get renters insurance. Let me tell you why:

Renters insurance is often overlooked or misunderstood. Pop quiz: your apartment burns down, gets broken into, the ceiling caves in on all your stuff or someone slips and falls In which of these would you be ok without renters insurance? Correct answer: none of the above. Yikes, let that sink in. You’ve worked so hard to make it to where you are today and someone breaks in. All your (valuable) stuff  is gone, and you have no way of getting it back. In my opinion, you basically have two options: have less valuable stuff or get renters insurance.

Your landlord’s insurance won’t cover you. Their homeowners insurance covers the house, not the home, i.e. it covers the building but not what’s inside of it. If something happens they’ll still have their house but you will lose your stuff. Renters insurance protects your valuables and will replace them in the event of a loss.

Additionally, a thing called personal liability is a reality that we young professionals now face. We’re on our own and are responsible for our actions in the fact of harming others. Friends coming over that trip and break their neck might sue you. The cable guy that is upgrading your flat screen has the TV ledge break and the TV fall on him, he’s coming after you. A renters insurance policy covers this liability, and often comes in $100k coverage increments.

Two quick true stories to scare you into getting renters insurance:

  • A good friend of mine’s apartment burned down one night. He woke up, smelled smoke and heard the fire alarm. Thankfully he was ok but his stuff wasn’t; he lost everything. Thankfully he had renters insurance and got it all replaced.
  • Another good friend failed to insure his fiancé’s engagement ring. A valuable such as jewelry is easily covered thru renters insurance. She’s at the gym and takes if off for no more than 5 minutes, and it gets stolen. My poor friend didn’t have that covered and had to buy a new engagement ring.

The bad news is that we live in a world where as Allstate puts it, “mayhem is everywhere”. The good news is that renters insurance is cheap and easy to get. The average policy should cost you $100-$150 per year. That’s a no brainer. Get a quote today, you’ll find a variety of coverage options. My policy covers $10k of stuff because that’s all the coverage I need (what 24 year old has $30k of stuff in their apartment?). I also got $150k in personal liability so that will pay if someone sued me, it would cover court costs and medical bills. There are lots of good insurance companies to go with. Both banks and car insurance companies offer quality renters insurance on the cheap.

Don’t chance it, be smart and get renters insurance today.

Hope you enjoyed the article, here are some other articles that you might enjoy:
How does car insurance work?
Things every new grad should know
Start a budget!

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  5. Jonathan Craig says:

    Believe it or not, when I signed up for AAA auto insurance, the lady on the phone told me that my annual premium would go DOWN if I added on renter’s insurance. Apparently, the multi-policy discount outweighs renter’s insurance. If this is an option for some of you, I’d say it’s worth looking into!

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