Renters insurance is rarely discussed and therefore is surrounded by many myths. Here we are going to debunk the common misconceptions surrounding renters insurance so you can purchase your plan with confidence. With that said, here are the 4 myths about renters insurance you want to know about.
Myth 1. Renters Insurance is Expensive
The thought of taking out a separate insurance policy for your rental may seem like an expensive idea, but, contrary to popular belief, renters insurance is no more expensive than one dinner a month. This does depend on the policy you take out, but regardless, the cost of renters insurance is nothing compared to what you can be held liable for without an insurance policy.
Myth 2. Renters Insurance Can Be Purchased After an Event Has Occurred
Attempting to take out a policy after an event has occurred and then proceeding to make an immediate claim, is actually illegal. A renters insurance policy must be taken out before an event occurs with the majority of people taking out a policy when they sign the contract. You cannot take out a life insurance policy on someone already deceased, and this same ideology applies to renters insurance.
Myth 3. I’m Covered Under Another Insurance Plan
When taking over a rental, it is common the landlord will have a policy in place to cover the unit itself. This is normally referred to as property insurance. Some rental contracts may even specify that the tenant is required to pay a portion of the property insurance, this is still not a form of renters insurance. A property insurance policy merely covers the brick and mortar of the unit leaving you open and liable for a large number of events that can occur.
Maybe, your roommate has a renters policy as well, surely that must cover you. Sadly, no. Your roommate or significant other’s renter’s insurance covers them and their belongings – it does not cover you. For full, personal coverage it is vital to take out your own rental insurance policy where you can specify your valuables.
Myth 4. Renters Insurance is Unnecessary
No one could have expected what 2020 has brought us. If someone told you last year that you would be required to wear a mask walking into a bank, you probably would have laughed them out of the room. Well, things happen, and this same mindset should be used when looking at your personal property and the contents within your home sweet home. Rental insurance does not just cover you and your property, it protects guests and people working in your home as well. Maybe you can afford to replace your television set, but what if someone fell while visiting you? What if they got hurt? Medical bills add up – and it is unforeseen costs such as this that’ll make you think twice about the necessity of having renters insurance.