Your Two Cents: Is Renter's Insurance Worth It?

November 4, 2009

Sure, it's always better to be safe than sorry, but sometimes being safe is costly and troublesome — and turns us off. Renter's insurance, for example, seems a necessary precaution to protect your rental apartment or home. But a recent poll among my friends revealed that even savvy, intelligent women are too bothered by the hassle and the anticipated cost of signing up.

If renter's insurance doesn't seem like a big deal to you, look at it this way: if you're a renter and something happens to your home, you might lose everything, and no one is responsible. Not your property manager. No one. Even in the event of a fire or a flood, your landlord is not legally responsible to cover the damages. Don't take my word for it; read these renter's nightmares and you just might be convinced to get yourself insured. And the truth is, it's actually pretty low-cost — depending on your policy, you could spend as little as $20 a month. So, tell me, do you think renter's insurance is worth the trouble?

27 Comments

2 years

Renter's insurance usually covers personal liability. This is if somebody is injured on your premises and sues you or takes legal action against you. This would also cover your personal liability on or off your property. Renter's insurance also covers your personal property anywhere in the world. Usually, they cover all of this and more. Just like somebody mentioned, why not pay only twenty bucks per month and have all of your belongings covered instead of having to dip into your savings, regardless if you have lots of money saved up?

lilkimbo 3 years

All names, it sounds like you have dealt with some shady insurance companies. I have always been reimbursed the full amount I paid for things or the replacement cost (which is sometimes more than what I paid). And, the only time a receipt has ever been required is when I was putting something on its own separate rider.

3 years

The reimbursement seems a hassle. Ins companies ask for receipts, pictures of items, then they apply depreciation... I paid for a TV $1000 5 years ago. If I lose it, then I get paid, say $200, but it's going to cost me more to actually buy another TV. So, what's so worth it about?

3 years

Hey, its totally worth it. do have an insurance if you can afford so Road Accident Compensation

insanitypepper 3 years

Definitely worth it. This is one of the more affordable insurance types out there.

bellaraquela 3 years

It is totally worth it...we lost everything in a house fire that started at the house next door and we didn't have insurance. Even with a large savings it didn't cover replacing everything (if you just think about getting dressed in the morning and what you need for that, think about replacing all of that) and on top of replacing everything, you have to find a new place to live!

verily 3 years

My rental house was broken into ONE MONTH after I moved in. I didn't move to some high crime area; I moved to the suburbs! When I lived in a high crime area, I never ever had a problem... They only took my roommate's almost dead work laptop w/o the matching power supply (it wouldn't have functioned for them unless they found a new battery somewhere) and a few of my Season 1 DVD box sets (but strangely not any of the other seasons I had). There apparently had been a rash of burglaries a few months before by a pack of teenagers, so we think it might have been similar. We didn't rental insurance then and my roommate's work laptop was a hit to the workplace's insurance, so the loss for my DVDs wouldn't have been more than the deductible. However, I immediately ran out and bought insurance after that anyway. $80. Hardly anything for some piece of mind. We had a window broken about three months ago. They didn't get into the house, so we don't know if it was an aborted burglary attempt or just vandalism. But we were covered that time at least.

Dhorwich 3 years

I know I should have renters insurance but I don't. That's mainly because I don't own anything worth much beyond my laptop computer which I heard wasn't covered, but now that I've learned it CAN be covered I'll definitely get renter's insurance once I get my new laptop - in the next few months if the current one doesn't die sooner. That will be the catalyst to finally call AAA and get signed up.

esmerb 3 years

Great investment that I have never looked back on getting!

Spectra 3 years

It's most definitely worth it. My brother in law lived in an apartment that burned down a few years ago and he lost absolutely everything. Luckily, he had renter's insurance, but even with the insurance he was extremely surprised at how expensive it was to replace everything that was lost in the fire. When we were renting, we had a renter's policy through our car insurance carrier (American Family) and we paid something like $10 a month or something small like that. You never know what's going to happen, so better safe than sorry.

Modus Vivendi 3 years

Beyond just your stuff your renter's insurance would also pay for a hotel if you had to move out for a while due to smoke damage or something. I also think people who say they could just replace everything might be vastly underestimating how much it would cost to replace literally everything you own. Furniture and clothes are obviously the big ticket items, but having to get new sponges, shower curtains, dishes, coffee mugs, rugs, sheets and towels, all your small appliances (toaster oven, blender, etc) new computer, replace all your CDs, the art on your walls...it would be so expensive!

syako 3 years

Yeah I agree, we definitely have savings that could cover all our possessions in the apt., but at $10/month why not just have the insurance? I'd rather keep those savings for a down payment on a home than replacing stuff that got ruined (especially if it was someone else's fault, e.g. the apt building burning down, tree falling on the roof, water damage, some punks breaking in, etc.)

Happsmjc 3 years

OMG so worth it! I think it could be disastrous for those who don't take the time to get it or do the research. My close friend's apartment burned down. THANKFULLY she and her one roommate had renters insurance. It was such a blessing! She lost ALL of her stuff, and all was replaced! Her furniture, all clothing, etc. We laugh (now years later) that she somehow made out in the deal since she got new things--but it didn't seem like it at the time since it happened during law school exams. But she could have been thousands in debt if that had happened. Its worth the money and I ALWAYS get it--it takes no time and little money. Recently the apartment my brother just moved into flooded and he hadn't had time to get insurance yet, so in the flood we were hauling out flat screens and furniture--something we wouldn't have had to do had he had insurance.

jessy777 3 years

It is worth it to me. I only pay 17/per month and get an additional discount on my car insurance for using the same provider. Even if I could buy new stuff, I wouldn't want to dip into my savings to refurnish my apartment or buy a new laptop. What would be helpful?...if I could ever afford health insurance.

GlowingMoon 3 years

For us, no. Like some posters, we had substantial savings, so if everything was gone, we could easily purchase new stuff.

3 years

I have renter's insurance through Allstate and it cost $98 for the whole year. This June my luggage got stolen from my friend's car (we went out to dinner after she picked me up from the airport so we hadn't dropped off my bag yet) and my renter's insurance covered the cost of replacing everything I lost (i.e. - the suitcase, my make-up, clothes, shoes, etc.). I had a $250 deductible, but I lost about $1200+ worth of stuff, so it was SO worth it. I didn't realize my policy covered my belongings when I was traveling until I filed the police report and they said I should call AllState to find out.

lilkimbo 3 years

I have it and don't understand people who don't. I have a fair amount in savings, so in theory I could pay to replace all of my things if something were to happen, but why would I want to tap into my savings when I can just pay $100 a year and be done with it?

snarkypants 3 years

this insurance fluctuates depending on what kind of building you live in, etc. i think mine is also around $10. i can't imagine not having it! if something happens to my apt, replacing everything would cost a lot more than the $120 i pay each year!

Deidre 3 years

This is interesting -- I live in a city of renters, and not a single one of my friends has renters insurance (myself included).

imLissy 3 years

$20 a month?? We pay about $12

Modus Vivendi 3 years

Leila and Sy, mine's also only around $10 a month, I think. Maybe it's that discount from having auto with them too. It also covers me if my dog bites someone! It's so cheap and such a good idea, it boggles my brain that more people don't have it.

syako 3 years

Our's is similarly around $10, we have it through the same company that insures our cars so we get a discount. $10/month is definitely worth it.

supercoolnat 3 years

I think it can be worth it, depending on the state of your savings and the value of your stuff. My husband and I have talked about it several times, and we've decided not to get it. We have substantial savings that we would be able to tap into if something did happen. And our most valuable belonging is my ring, which is covered under its own policy. So we've made a risk-based decision to not purchase insurance, since the likelihood of a disaster is relatively low, and the consequences for us are low due to our savings and the value of our belongings.

mek123 3 years

I think if you can afford it, renters insurance is worth the peace of mind.

MOMto2Kitties 3 years

It's definitely worth it, because you never know what can happen. Also, many apartment's require you to have it. You may not know that, but check your lease!!

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27 Comments