Build Your Nest Insurance

Do I Need Renter’s Insurance?

Are you moving into a new apartment soon? Are you currently renting your apartment?

If so, you should consider purchasing renter’s insurance for protection against your personal belongings.


Why should I consider renters insurance?

Insurance is protection against the unknown – you cannot predict if your apartment will be broken into, floods, or catches on fire. Since these outcomes can occur and damage our personal belongings, shouldn’t we be prudent to protect against significant financial losses?

Replacing the value of our clothes, electronics, bed, art work, and jewelry will require a enormous amount of money. If you do not have sufficient assets to repurchase your belongings, how would you recover?

With that being said, renter’s insurance is a risk management tool that can prevent you from facing a preventable financial hardship.


Does my lease protect my personal belongings? 

For the most part, NO!

An apartment complex or a landlord is responsible for the structure of the unit that you live in. Your lease does not include protection against your personal belongings1. If a fire starts in your apartment complex and all your belongings are destroyed, you are liable to replace your belongings with your own money.


Is renter’s insurance expensive?

According to ValuePenguin, the average cost for a renter’s insurance policy in 2017 was $1872.

Protection for $187 for my personal belongings that are valued at $10,000 – Sign me up!

In summary, renter’s insurance is a valuable tool that can prevent us from a financial disaster by protecting our personal belongings. Don’t take a chance and think you will never face a fire or flood – act now to avoid financial hardship.


References:

1. https://www.investopedia.com/articles/personal-finance/082714/6-good-reasons-get-renters-insurance.asp

2. https://www.valuepenguin.com/average-cost-renters-insurance