Most Likely to Rent, Least Likely to Insure

These days, a growing number of young people are delaying home ownership. There are myriad reasons- some prefer to travel or simply aren’t ready to settle down until they are secure in their careers.  For many, student loan debt can also make it difficult to save for home ownership.

While renting can be smart move if you’re not quite ready to lay down roots, one thing that isn’t wise is skimping on Renters insurance.

You may assume that you’re covered under your landlord’s insurance policy.  However, this only covers to the actual dwelling you live in, leaving everything else—your electronics, furniture, and clothes—at risk.

This is where Renters insurance comes in.  It provides protection against loss of or damage to your personal property as a result of fire or smoke, vandalism, theft, explosion, windstorm and water damage (not including floods). It covers repair or replacement of furniture, clothing, electronics, and other personal items, including personal property stolen from your car.  If your rental unit becomes uninhabitable due to a covered reason, Renters insurance may cover your temporary living costs.

Renters insurance also includes liability coverage, so it can cover the medical bills of a guest injured on your property in addition to repairs if you accidentally damage someone else’s property.  And if you are sued for a covered reason, Renters insurance may cover your legal costs too.

Because you’re only covering the cost of your belongings and not the dwelling they’re housed in, you may be surprised to find that Renter’s insurance is actually quite affordable, with the average policy costing less than $200 a year.¹

¹ Insurance Information Institute, 2015 costs.