The goal of most people is to one day own a home and fill it with all their favorite heirlooms and possessions. But what do you do when you’re someone who rents? There are millions of Americans out there who rent either an apartment or a home. This place doesn’t belong to them, they are still responsible for their stuff.
According to the Nationwide Mutual Insurance Company, the two biggest fears that renters have are theft and fire. They conducted a survey of over 1000 renters and this is what they found. 24% of those surveyed said that they would grab their laptop is the first object out the door, even over any family heirlooms.
The surprising fact about the survey is that it revealed that 56% of them said that they had no renter’s insurance. Of course, you’re going to be worried about theft or a fire if you have no insurance to help cover the claims. But there are several myths that are being perpetuated out there about what is actually covered or not in the event that something bad happens.
Let’s take a look at five of those myths:
1) You’re Covered by the Landlord
You might think that you and your possessions will be covered by the landlord. Most likely, the landlord does have insurance, but that insurance will only cover damage to their building or property. It will not cover damage or loss of your property. In the event of a fire, the landlord would be able to make repairs to the building through his insurance policy. His policy doesn’t cover any of your stuff.
You would be responsible for replacing all of your furniture and possessions. You would also probably have to find a new place to live until the repairs are completed. By having renter’s insurance, your possessions would be covered and you might have a policy that allows temporary lodging while repairs are being made.
2) It’s Too Expensive
One of the main reasons why people don’t get renters insurance is that they believe it’s too expensive. But that only means that they’ve never really looked into it or that they compare it to car insurance which is often hundreds of dollars. The average cost of renter’s insurance is $20 a month. It’s not very expensive at all and many insurance companies will offer a discount.
3) Accidents Aren’t Covered
Would say your friends get together and have a little bit of a party. Would your renter’s insurance cover any damage? What about other accidents or injuries? The amount of coverage you receive will be different compared to the package you choose and what you pay. You may be surprised about what’s covered.
4) Renter’s Insurance Doesn’t Cover Theft
This is a myth that’s simply untrue. You’re not just covered for theft, but also for any damage that occurs to your property during the process of the theft.
5) You’re Not Covered for Natural Disasters
A natural disaster that damages the building would be covered by the landlord’s insurance. But your stuff is still covered, depending on the type of plan you get. Things like floods and earthquakes are only available in areas that are more prone to getting hit by those things. In most instances, it’s storm damage, lightning, fire, wind, and hail.
