Editors' pick: Originally published Feb. 7.
Whether you rent a home in the suburbs or an apartment in a hip neighborhood downtown, you'd be distressed and perhaps financially devastated if your belongings got damaged or stolen. Fortunately, that's a risk you don't have to worry about when you have renters insurance.
And you might be relieved to know that paying for a renters policy won't kill your budget. While studies show that many renters believe coverage costs $1,000 a year, it's actually only $188 per year or about $15 per month on average, according to the National Association of Insurance Commissioners.
Here are 6 reasons why you should never skip renters insurance:
1. You likely have more at risk than you think.
Even if you're just starting out, your belongings are probably way more valuable than you think. Imagine coming home and finding your rental, and everything you own, destroyed by a fire.
What would it cost to purchase a new wardrobe, furniture, artwork, electronics, sporting goods and housewares? Not to mention any high-value items you may own like jewelry, antiques and collectibles. An average two-bedroom apartment can easily contain more than $20,000 in personal property.
With renters insurance, you choose the amount of coverage based on the value of what you own. The higher your limits, the more your premium will be.
2. Landlords don't insure you.
Don't make the mistake of thinking that if your personal property is damaged or stolen that your landlord will reimburse you. A property management company's or landlord's insurance only protects the physical structure of your home or building, not your belongings.