If there was ever a purchase you should file under “needs” rather than “wants”, renters insurance is surely it. While not every state requires it, the benefits to having this seemingly “what if” protection far outweigh its costs. However, like any insurance coverage, you should compare and shop around before you buy.
Price Is Extremely Important and It Can Vary
You need to shop around for renters insurance quotes because companies tend to approach the same risks from different styles of underwriting. After all, insurance is no different than other types of businesses with some companies pricing more aggressively than others. Working in your favor, though, is that the pricing will change over time. It’s not just a fixed thing so you need to be able to shop around and see who is currently hot and who wants your business the most.
Furthermore, a study by BankRate found that rates for comparable quotes varied by nearly two hundred percent! In other words, if you took the first price you were given at the first company you inquired to, you could wind up paying double (if not more) for the same product. That’s not the financially savvy way to go about paying your bills, is it!?
You Need to Have the Right Kind of Liability
When you think about the cost of renters insurance in general, it really is a great deal. The amount you pay might seem like a lot at first, but the rate is pennies on the dollar if you compare it to what you would pay if you had a major claim. Even the top insurance experts in the field suggest that you need to compare renters insurance quotes from comprehensive sites, such as CoverHound, not only for a selection of competitive prices, but also the different types of coverage limits you can experiment with.
When you think about all of the potential liability cases that could occur, there is a fairly high chance that something could happen on your property if you ever have company over. Between slips, trips, and falls alone you could wind up with the need to protect yourself and your assets. This is even before you get into potential liabilities that come as a result of your children, friends and extended family, or even your pets. When you hear the stat that the recorded number of dog bites is more than 4.7 million annually, you can easily imagine how important it is that you have adequate coverage on your hands.
For many people living in an apartment, a fire or burst pipe in someone else’s unit can be nightmarish, causing damage to your belongings through no fault of your own. Renters insurance allows you to replace damaged items so you can go on with your life after a disaster with as few hitches as possible.
You May Be Broke, but You Have More Than You Think
The number one reason that younger people and single tenants will forgo renters insurance is that they think that they don’t have anything worthwhile. This fact couldn’t be further from the truth for most people. When you consider everything you have on a case by case basis, you truly can start to see the costs adding up in no time. Rather than being stuck to repair and replace everything that you own, it would make more sense to be covered in the event of a total loss.
Just imagine you did have a total loss. What would it potentially cost you to replace your furniture alone? How about the jewelry, and other accessories on top of that like belts and ties, or purses and shoes, for example? When you include coats and specialized sporting gear, you might start to see the dollars add up, and then when you start to think about the things that don’t immediately come to mind, like bedding, dressers, and random closet items, you can truly see the worth of renters insurance. And this is all before we have hit food, personal hygiene items, electronics, or other tools and collectibles. When you start to hit the five-figure amount, which isn’t uncommon even for recent graduates and young urban professionals, you can start to see what is at stake in a potential total loss.
Rather than playing the proverbial game of risk and shooting the dice with your own assets, why not take a few minutes to look at how you can protect your items? Consider the risk of loss against the cost of renters insurance.
The worst-case scenario could happen at any moment, but if it should come, it feels good to know you’ll be covered. Whether for liability reasons alone, personal property, or both – having the assurance of financial protection feels good.