Even if you’ve downsized your apartment or rental home during the recession, chances are, you have a computer, TV or clothes that you’d rather not live without.
What would you do if all of your belongings went down in flames? Could you afford to replace them?
Putting a Price on Security
If you’re a renter, you can’t rely on your landlord’s insurance to cover your lost belongings in the event of a fire, flood or other damage. A landlord’s insurance only covers the rented building itself, insurance experts say.
Even college students could need renters insurance for belongings in their dorm room if they’re not covered under their parents’ homeowners policy.
So think of your computers, clothes, furniture you love and things you collect. Could you replace everything you own if it was irreparably damaged? If your stuff is worth several thousand dollars, it may be worth it to pay to be able to.
Renters insurance generally costs between $8 and $25 per month, or about $100 to $300 per year, according to Mark Strauss, a Portland, Ore. Independent Insurance Broker. And it can be especially worth it since it actually covers more than just your stuff.
1. Belongings. Some renters insurance plans can cover more than just what your possessions are currently worth. They can even cover the cost to replace them, which could be a significantly higher amount.
Renters insurance can also protect items that are most likely to be stolen, like a laptop or bike, regardless of where you are, says renters insurance provider State Farm.