Do we really need renter's insurance?
Renter's Insurance for a First Apartment?
by Dollar Stretcher Contributors
Furnishing a First Apartment
How Much Money Does It Take to Set Up a First Apartment?
Decorating Your First Apartment on a Dime
Renter's Insurance for a First Apartment?
I found several helpful articles on the Dollar Stretcher site for determining the costs of renting a first apartment, but I did not see much mention of renter's insurance. Is this something I should be considering? I am getting ready to move into my first apartment, and although I do not have too many possessions at this time, I wonder if I would be wise to go ahead and get it. Or would it just be a waste of money at this point? I do have student loans I am working to pay off, so my budget is a little tight. What would other renters suggest? If you have renter's insurance, have you found it worth the cost, even if just for the peace of mind?
Pay for the Renter's Insurance
A friend of mine did not get renter's insurance for her apartment. Another tenant's unit caught on fire, and the whole apartment building burned to the ground. My friend was home with her husband and her baby. They had to climb out of a window and down a tree. The only things they had left were themselves and their car. She had to replace furniture and clothing, but also little things like scissors. She said that it was so difficult to replace it all and really regrets not paying for the insurance. It feels like you do not have much until it is all gone and have to replace it all.
Insurance May Be Required
While some apartments still say renter's insurance is optional, there are many apartments are now saying you must have renter's insurance. Get it with the same company you have your car insurance with and you'll get a discount.
Absolutely Buy Renter's Insurance
It is relatively inexpensive and will not only provide peace of mind but also pay off if you are robbed, have a fire, or someone is injured in your first apartment. I bought when I was young, on a budget, and paying student loans.
Temporary House if First Apartment Is Lost
Renter's insurance covers your belongings for theft and loss due to fire. Although you don't have much, you should consider what it would cost to replace everything if there is a fire. Also, where would you go if you lost everything? Insurance generally covers temporary housing until you get back on your feet after a loss. Renter's insurance is usually very inexpensive. Call a couple of independent agents to get prices. At that point, you can decide what is best for you based on your needs and income.
Cover Your Electronics
If you have any electronics (laptop, iPhone, etc.), these would be covered. Renter's insurance is not that expensive because you are just insuring the contents. Imagine replacing all of your clothes and shoes. When we were renters many years ago, we lived in three separate places that had fires near our unit. You cannot always control the apartments around you (candles, grills, etc.). I say peace of mind is worth the small cost they will charge you.
Calculator: Home Budget Calculator
Need Renter's Coverage If Someone Is Hurt in First Apartment
Every renter should have renter's insurance. Not only does it cover replacing your furniture, dishes, clothing, etc., but it also covers staying at a hotel and eating out if your place is uninhabitable, liability insurance if someone is injured at your place, and items stolen from your home or car.
J & B
Could You Replace All Possessions In Your First Apartment?
As far as buying renter's insurance, some building complexes require all renters to purchase it. The landlord should state in the lease if it's required. If it's not, the lease may state that all possessions of the renter are the renter's responsibility if a hazard (fire, earthquake, etc.) should occur that damages the possessions.
Therefore, see if it's a requirement first. If not, check to see how much a policy would cost versus the cost of replacing all of your possessions. If it's within your budget and at a reasonable price, then buy it.
Shop Around and Do the Math
Landlord's have landlord insurance to cover the cost of the structure. Renter's insurance merely covers your belongings in the place you rent in the event it is destroyed. Compare the replacement cost to the cost of the renter's insurance. If it costs more than it would to replace the items, then just put the money you would use for the insurance aside. On the other hand, if it costs more to replace the items than the insurance, it may be worth the money. Shop around and do the math to make a wise decision
Advice From an Insurance Agent and a Renter
I just rented my first apartment, and I am also an insurance agent. I would highly recommend getting renter's insurance. If you already have auto insurance, I recommend checking into renter's insurance through them as many times you will receive a discount on your auto policy that almost pays for the renter's insurance policy. Also something most do not know is that a good renter's insurance policy will also help reimburse you for expenses incurred if you have to leave your apartment due to a fire or other severe damage. This in itself has helped many of my customers. My policy covers me for $30,000 on contents, and I pay about $100 for the year.
Take the Next Step:
- See why you need a home inventory.
- Get off to a smart financial start. Get money-saving tips and advice specifically for the 20-something crowd.
- Stop struggling to get ahead financially. Subscribe to our free weekly Surviving Tough Times newsletter aimed at helping you 'live better...for less'. Each issue features great ways to help you stretch your dollars and make the most of your resources. Subscribers get a copy of Are You Heading for Debt Trouble? A Simple Checklist And What You Can Do About It for FREE!
Have an idea that we didn't include? Send it to us and we'll add it to the article.