When an individual considers purchasing insurance for property, they only think of homeowners insurance. You rationalize that such purchases, are required of people who actually own homes, and never consider renters. You likewise may need to contemplate purchasing renters insurance. Renters tend to think they don’t have anything much worth insuring. If they are giving the consideration to purchase renters insurance, they generally focus only on the big ticket items – electronics, flat screen TVs, Bose radios, laptops, jewelry, etc. Little consideration is given to the items they used daily.
Rarely, do renters consider the costs of repurchasing items, such as, bedding, curtains, towels, clothing, furniture, and the list goes on and on. Sitting down, and inventorying all that you have in your apartment, condominium, or flat will help you determine the cost to replace these items, as well as perhaps, the need to rethink purchasing renters insurance. Having insurance that covers the loss of personal property may put our minds at ease, if a sudden disaster strikes, such as a fire, tornado or flood. You feel confident knowing that your renters insurance will cover the repurchase cost of all items, covered under the policy.
So, why do most renters forego purchasing renters insurance? As previously mentioned, most don’t think they have anything worth insuring or at least only their big ticket items, so they decide it’s not worth the trouble and added expense. Others think renters insurance is too expensive. Some mistakenly believe that, the owner of the complex is responsible for replacement of personal property lost, when disasters strike. How wrong are they? It is not the responsibility of the apartment owner to replace the loss of personal property, of residents when disasters occur, either natural or man-made. These costs are incurred by the resident. This is why renters may want to take a closer look at the benefits of having renters insurance.
Renters’ insurance policies can cover much more than simply your personal property. It can cover accidents and thefts. Consider this scenario. You arrive home after a hard day at work, and you decide to take a nice, hot bath. You start drawing the bath water when the phone rings, you answer and it is a good friend from high school. Excited to hear from your friend, you engage in a conversation forgetting about your bath. Suddenly, there is loud knocking on your door, you step on the carpet in your bedroom and it is soaked. Then you realize you forgot to turn the water off in the bathtub, you also realize why someone is pounding on you door. Your apartment is flooded, and the resident under you has water damage to nearly all the rooms in his apartment.
With the right type of renters insurance, all or nearly all the damages to the property of the resident living beneath you, may be covered, as well as damages to your personal property. However, you decided to forego renters insurance, because you thought it was too expensive! Before deciding against renters insurance, talk with a HUD housing counselor. The housing counselor can certainly assist you in understanding the benefits, of having this insurance and may even be able to help you estimate how much it will cost.
As the old adage goes, “It’s better to be safe than sorry!” Explore all options, before deciding against purchasing renters insurance. A HUD housing counselor can assist you in making an informed decision!