If you’re one of the 44-odd million Americans renting an apartment, home, condo, duplex, or even a spare room: chances are you don’t have a renter’s insurance policy.
Fewer than half of us do. A decision that’s easy to understand, but difficult to justify in light of the facts.
What’s stopping us?
For one, renter’s insurance doesn’t feel necessary. Renting is almost never a permanent living situation. At any given time, many renters are entirely new to the concept of property. And insurers have a cultural reputation of over-selling their products. Sure, it’s true that your landlord is legally-required to have property insurance. But many renters erroneously assume that that policy also extends to the residents.
Let me be clear: your landlord’s policy covers the building and its constituent units, but coverage ends at your doorstep. None of your personal property is protected by your landlord’s building policy. Your basic assumption should be that the landlord, in all cases, has minimized their responsibility for the dweller and dwelling.
Consider this: how much is the device you’re holding worth, alone? What’s the value of your computer? Television? Clothing? Furniture? Collectables? You worked hard to purchase these things. For most of us, that dollar amount quickly climbs into the thousands. Much more expensive than the deductible on a basic rental insurance policy.
Which – by the way – is a shockingly cheap thing. According to Nerdwallet, the average price of a renter’s insurance policy is $168 per year. Mine was just $100, through Allstate. It’s a small, small price to pay for lasting peace of mind. So small, you can’t justify refraining. If you have enough to afford the security deposit, as well as first and last month’s rent, you should also be able to afford a policy that represents just 2-3% of the up-front cost of your unit.
In fact, many landlords are addressing this lapse in coverage by requiring tenants to purchase insurance as an initial condition of signing the lease. Like a second security deposit that shifts responsibility away from the landlord, in the event of an incident.
Just buy it. If you feel like you can’t afford it, then you definitely can’t afford the consequences of not having it. So do it for you, do it for your roommates, and do it for the pizza delivery person who just slipped on your doorstep.
Who knew his dad was a personal injury lawyer? Good thing your renter’s insurance covers liability, too.
