I think that renter’s insurance gets a bad rep. It is extremely unappreciated for how much coverage it provides.
It only protects your personal property right?
Most people think that this is the case. After all, renter’s insurance is very affordable and doesn’t cover the structure you’re living in. You just have to stop thinking only about “stuff.” Allow me to explain what renter’s insurance can do for you…
Loss of Use Coverage
What would you do if a fire forced you out of your home? You would have to find a temporary place to stay for a few months at least. Loss of use coverage is going to pay for you to rent a house or stay in a hotel up to its specified limit. I recommend having a limit of at least $25,000 in case of a serious incident forcing you to relocate for up to a year.
Personal Liability Protection
We live in an increasingly litigious society. People can and will sue you every which way if they have the opportunity. A dog bite or a trip in your residence can cause you serious financial problems if the injured party decides to take legal action. Personal liability protection helps cover legal expenses and even judgments against you.
Personal Property Coverage
Finally, the coverage that people most often attribute to these policies. It can be difficult to attribute a value to all of our personal property. I like to ask this question: What would you take with you if you moved? Think of the couch, kitchen utensils, the tv, etc. Now imagine how much it would cost to replace it all. Typically, a limit of $25,000-$50,000 will do the trick.
How much does renter’s insurance cost?
Actually, it is quite affordable. That being said, you can expect to pick up a comprehensive renter’s insurance policy for about $200-$400 a year. Thats right, they are only about $20 a month!