Month in and month out, you send a rent check to your landlord. You don’t mind doing this, as you enjoy your living situation and hope to stay put well into the future. But here is something you may be forgetting: tenant’s insurance.
Not only should you understand tenant’s insurance, including what is covered and how much it costs, but you need to calculate the risk of not purchasing a policy.
Just as a homeowner purchases home insurance to protect their belongings, renters should do the same. There is a reason many people neglect to do so: it’s not required.
Who will pay for your possessions if they are damaged in a fire? What about if somebody breaks into your apartment and steals something of great value? A tenant’s policy will cover your personal belongings in the event of a disaster. To put things into perspective, run a quick inventory of even just your kitchen and family room. Think about opening every drawer and cupboard and having to replace every item. The costs will add up very quickly.
Here is something else to consider: tenant’s insurance provides liability coverage. If somebody is injured in your home – maybe due to a slip and fall on a wet floor– the cost of medical care will be covered by your policy.
Most people look at tenant’s insurance and see nothing more than the monthly premium. For example, a comprehensive policy may set you back $25 per month. It’s easy to consider this a waste, since you are not required to make a purchase. Furthermore, you may be the type who believes nothing bad will ever happen to you.
The true benefits of a policy are calculated by taking the risk into consideration. Here is a question to answer: would you rather pay $25 per month for coverage, or be out tens of thousands of dollars in the event of a fire, theft, or other covered disaster?
Your answer will clear your mind, proving that the small monthly cost of tenant’s insurance is well worth the protection and benefits you receive in exchange. Like most renters, you don’t have enough cash to replace lost belongings. To protect yourself, both personally and from a financial perspective, a tenant’s insurance policy is a must.
The true benefits of a policy cannot be measured until you get past the monthly payment. Only then can you focus on the advantages of buying coverage.