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Do Renters Need Insurance?

Why Renters Should Buy Insurance

Statistics show that renters, unlike homeowners’, frequently choose not to insure for reasons such as:

  • Insurance isn’t necessary because there’s no home, garage or similar property to worry about
  • There’s coverage automatically provided by my landlord, host or relative with whom I’m living
  • I can’t afford it
  • I don’t have enough possessions to insure
  • There’s little chance that anything will happen to my possessions

Busting Renters Insurance Myths

The only thing true about the above reasons for not getting renters insurance is that they can cause real misery from an uninsured loss. Renters need to consider the following:

  • Possessions are purchased over time. This fact makes it less obvious that a renter may own tens of thousands of dollars’ worth of property that needs to be insured
  • Many belongings are very high-value. Renters should consider what jewelry they own and pay particular attention to their electronics situation (sound systems, DVDs, game systems, speakers, computers, etc.)
  • Even modest living areas can hold lots of expensive property.
  • Renters insurance is affordable, often well under $200 per year.
  • Insurance policies carried by landlords typically offer little or no coverage for property that is owned by tenants and guests.
  • The same things that can damage a building can damage the property in the building, particularly natural disasters and fires; so a building’s contents are very vulnerable to loss

What about Being Sued?

Rental insurance provides protection against being sued by people who become injured in your apartment or off the premises as a result of your actions. Medical and emergency treatment is expensive, and injured people will often seek compensation. If you rent and you don’t have insurance…then financial protection from liability lawsuits are a good reason for contacting an insurance professional about getting rental insurance.

Colby Insurance Group advisors are available to answer your questions and provide a renters insurance quote. Give us a call at 800-392-6532.