According to the U.S. Census Bureau, citizens between the ages of 24 and 34 are renting more than ever before, but most millenials do not have renter’s insurance. Part of the problem is confusion about what renter’s insurance actually is. Think about it this way. You are fresh out of college and you have landed your dream job in New York City. You move into a two bedroom apartment (probably with 4 other roommates) and life couldn’t be more exciting. You spend a chunk of your hard-earned money on new furniture, a wardrobe for your career, you splurge on a big screen tv because, hey, that is a necessity. Here is where the problem begins. The owner of your apartment building most likely has an insurance policy for their building and their liability on the building. But, this coverage has nothing to do with you, your belongings, or your own personal liability. This is where the renter’s policy comes into play. Don’t need one? Think again! Here are the top 3 reasons you need renter’s insurance.
- Protect your belongings. You can literally pick a dollar amount that you feel would adequately cover your stuff. An easy way to do this is to do a quick inventory of everything you own and add it up. Keep in mind, the jewelry your grandmother gave you or that fancy new watch needs to be insured on it’s own. But have no fear, this can simply be added to your policy for a minimal premium.
- Personal Liability. I know, I know you’re just starting out and probably do not have a lot of assets to protect, but that still doesn’t mean you can’t be sued or held liable for certain actions. Believe me, you do not want something like this held over your head for years to come. Personal liability protections ranges from someone falling down at your party to being sued for slander based on something you posted on Facebook. This stuff happens!
- It’s Cheap! Every dollar counts these days, and this is precisely the reason a renter’s policy is important. It’s better to pay the $100/year (give or take) for your policy, then to have to replace your belongings yourself, or better yet, have to pay for a costly lawsuit.