Is Renters Insurance Worth It?

The short answer is yes. Renters insurance is worth it because the landlord's policy only covers his property. What about your loss?

renters insurance
  • In this short 6 minutes read article, you will:
  • Know the two main myths about renters insurance
  • What is covered in a policy
  • Tips for saving

About 95 percent of homeowners have policies to cover theft and damage caused by fires, windstorms, and other natural disasters, but only 41 percent of renters carry equivalent coverage, according to an article by Consumer Reports. Your landlord’s policy does not cover any of your belongings.

Two main myths about renters insurance:

  • I don’t own enough stuff in my apartment to need renters insurance coverage. Take a look around your apartment. From smart TV, laptop computers, kitchen gadgets, couch, chairs, bedroom set, mattresses, hairdryers, books, blinds, and all your clothes, you have a lot of stuff. The average renter in a two-bedroom apartment has about $30,000 worth of stuff.
  • Renters’ insurance is too expensive. For the price of two or three lattes, you can be covered. What is someone gets injured in your apartment, think about the liability that may arise? Let’s look at what renters insurance covers below.

What is covered in renters insurance?

Like most other insurance products, you are being covered for unexpected disruptive and expensive costs. If there was a fire you have to move immediately just when you are least prepared.

  • Personal possessions. Your possessions include beddings, kitchen utensils and gadgets, clothing electronics and more. Damage may be due to damage due to fire, theft, water damage, and other natural disasters like hurricanes. 
  • Medical costs. What is a guest gets injured in your rental unit? They may sue you and your renters insurance cover may just be able to cover these costs
  • Personal liability cover. Protection from lawsuits
  • Living expenses. Damage that may make your apartment not suitable for occupation, may force you to move. This may cover hotel costs, meals, and moving costs.


For about the price of dinner for two monthly, renters insurance is well worth it. Just for peace of mind.

Read:  5 Ways To Build Your Emergency Fund

How to save on premiums

Bundle your renters insurance with other insurance products that you buy. Examples would be car insurance and life insurance. Ask for multiple products discount. Install alarms and other anti-burglary protection to prevent vandalism. Install smoke detectors in case of fire and other protective measures. Let your renters insurance company know.

Almost all policies have deductible payments when a claim is made. You can consider raising your deductible on the policy. Usually, the higher the deductible, the lower the premium.

Keep an inventory or proper record of all your belongings. Although insurance adjusters are good at estimating loss value, it is better to have a record just in case the claim payment is lower than your loss. Consider storing this list in the cloud.

Renters Insurance is not expensive. For the cost-benefit analysis, it is a good idea. 

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