The Secret Myths of Renters Insurance Revealed

The Secret Myths of Renters Insurance Revealed

| January 11, 2021
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Real-life claims situations:  fires, flooding, break-ins, and the like.  If the real-life claims situation effects us, that is not the time to wonder if you have the insurance protection, or have no-insurance regrets.   

Many apartment complexes and landlords are requiring their renters/tenants to carry insurance on their belongings and liability.  This has been an upward trend in the insurance industry: many landlords having to foot the bill for damages done to their buildings and property, due to negligent renters/tenants having no insurance and no means to which to repay. 

The requirement of renters insurance can seem daunting at first, and even unnecessary, if you believe these myths. 

Let’s take 4 common beliefs or myths about renters insurance. 

 

  • My roommate owns and lives in the house, therefore my stuff is protected.  This is not the case.  Your roommate would carry a homeowner’s policy, which would cover all items belonging to them.  Your property is not their property; to protect your belongings, a renters insurance (also called tenant insurance) is required.  A true to life occurrence:  A homeowner’s house was broken into and both the homeowner’s and renter’s items were stolen.  Without a renter’s policy, the renter would be out of luck. 
  • It’s too expensive.   Most renter insurance policies are economical and budget friendly.  While there are several options available, depending on the insurance company, most annual premiums average around $200.  That is less than $20 a month!  Just think – simply choosing to to not eat lunch out for 2 days and you have saved enough to pay for your renters insurance each month!
  • My landlord/apartment complex will pay for my stuff. While it’s logical, it is simply not the case 99.9% of the time.  If your landlord/apartment complex was negligent or responsible for the damage to your apartment, rental house, or your belongings, then yes, they probably would.  However, more often, that is not the case.  Most often it can be from our own or another renter’s negligence – leaving a candle burning unattended, for example, that could be the cause.  Depending on who is responsible for the damage caused, determines whose insurance pays. 
  • I do not have a whole lot of stuff in my apartment or my belongings aren’t expensive. One of two of your items may not be costly, but what if all of your belongings were burned or damaged?  Renters insurance can help fund you enough to start over – to have the money available to get the basic items needed to start again – sofa, clothes, dishes, pots and pans, flatware, cups, towels, toiletries, food, etc.  Consider two different coverage types:  Actual Cash Value Replacement and Replacement Cost.  The easiest way to explain them is this:  If your 20 year old TV set is burned up in a fire, with Replacement Cost, renters insurance protection would pay for the full replacement cost or replace it with a like-kind of TV in today’s market.  Pretty cool, right? However, if you have Actual Cash Value Replacement, you will receive funds for a 20 year old TV minus depreciation.  Or let’s look at it this way – If you purchased a TV for $800 (replacement cost).  At the time of the damage/claim, this TV was 20 years old.  The expected life of the item in years is 30.  You would receive $266.67 with an Actual Cash Value replacement.  If you had Replacement Cost, you would be receiving $800. 

Acquiring renters/tenants insurance may seem daunting at first, particularly when traversing it alone.  Having an insurance agent to help talk through the coverage options available and customize a policy to protect you and your belongings, is the way to go.  Another set of eyes could help save you time and assure you have purchased the protection that is right for you, your situation, you’re your budget.  Remember, do not buy into the myths, but talk with an insurance agent today to help you get started.  Do not wait ….it is costly to start over with no insurance. 

Consultative Insurance Group is available to help you with your renters insurance needs.  Give us a call today! 

Olmsted Falls:  (440) 235-1442

Strongsville:  (440) 238-5300

Lyndhurst: (216) 291-4770

Columbia SC (803) 772-6969

Myrtle Beach SC (843) 353-1974

We are licensed in:  OH, SC, NC, IN, FL, GA, MA, ME, MI, NJ, PA, UT, WI, AZ and TX.

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