Do you rent the place you reside? If so, without renters insurance, if something happens to the property and your belongings, your belongings may simply be a loss. While renters insurance is important, many renters go without it. This is often related to some common myths associated with renters insurance coverage. Take a look at a few of the most prevailing myths about renters insurance and the facts to know.
Myth: You don't have enough stuff to warrant the investment
According to NBC News, the average American has something like 300,000 items in their home. Even if you don't feel like you have a lot of property, you can face a substantial loss if something happens and your belongings have to be replaced. Consider how much you have invested in furniture, clothing, electronics, and all the things you use in your daily life and the costs can add up quickly. In addition to personal property coverage, renters insurance may help you cover the costs of finding temporary living arrangements until the property is restored.
Myth: Renters insurance is too expensive for most people
Renters insurance is actually much more affordable than most people think. The policies are based on the amount of coverage you need, as well as the particular risks associated with the particular location. Unless you have a lot of expensive belongings to cover and need a high-level policy, you can likely work the cost into your budget. According to Nerdwallet, the average cost is only about $15 per month for up to $30,000 in coverage for personal property and $100,000 in general renter liability coverage.
Myth: You don't need renters insurance because the property owner has to pay for losses
A landlord does likely carry property insurance on the house itself. Therefore, if a fire happens and the structure is burned down, they will be reimbursed for the loss of the house. However, your personal belongings are not covered by another party's home insurance. Renters insurance would be needed to cover the losses that you faced due to the event.
Myth: Renters insurance doesn't involve liability coverage
If an accident happens on your rented property and the circumstances are found to be your fault, the landlord's property insurance may not cover the costs of damages incurred. In these situations, it becomes your responsibility to cover damages to a party because you are at fault for the injuries. Renters insurance can actually involve a limited liability coverage that kicks in if you are ever in this precarious situation.
For more information on renters insurance, contact an insurance provider today.