Renters Insurance..Is it really neccesary? Prove It.

Renters insurance is a confusing topic because many people who are renting might not be familiar with managing their assets. While home owners insurance is a must for the majority of those buying a house, a staggering number of renters do not carry renters insurance. In fact, according to MarketWatch nearly two-thirds of the 81 million people who rent their homes are uninsured for their contents or for any liability arising out of their tenancy. More and more apartments are requiring their tenants to purchase base amounts of insurance to move into a residence, but still the majority of Americans go without. So, what is the big deal and if so many don't have it is it really necessary? Great question and lets take a look at the two main reasons for purchase.

The first reason that people need to consider purchasing a policy is for replacement of personal effects. Some renters assume that they are covered by some magical insurance umbrella held by the landlord, and this is absolutely not true. The policy a landlord carriers does not cover your stuff. Even those of us who live modestly probably have a pretty substantial amount invested within those walls you do not own. A high-def TV, surround sound system, computers, a business and a leisure wardrobe, all of those small appliances in the kitchen, and even if your furniture was bought second hand or from WalMart it can and will add up and should disaster strike, and everything will have to be replaced out of pocket. The average renters policy costs about $10-15/month which equates to less than $200 a year. That means that you would have to pay 10 years of renters payments to compensate you for that wonderful mac book you love so much. Dumb. Now, if you still are playing the card that you don't have anything of value and you live life void of all nice things, then the next reason people get renters insurance should really make you perk up.

If something happens on your property you are held liable and will be forced to pay for damages. Here's an example: Should the repairman trip over your coffee table inside your apartment or if that sweet guard dog you bought to pick up chicks decides that his ankle looks like lunch it will not be your landlord's problem. It will be yours.

Renters insurance is an inexpensive way to protect you property and many times when paired with you auto it will discount both policies. In college the house I rented burnt down and my lack of planning left me with truly nothing. Trust me it is always better to pay a little for something you may never need then pay a lot when you need it immediately. If you have any questions we are always available to help you make the best decisions at the best price.