The Real Facts about Renters Insurance: Five Myths Busted

According to the Census Bureau, “The number of renters in the U.S. has reached an all-time high of 43 million.” However, only 41 percent of tenants carry renters insurance compared to 95 percent of homeowners who buy coverage for their homes. Even though a growing number of landlords and property management companies require tenants to carry insurance, most renters don’t have to buy it— with the result that many tend to go without. The two main reasons tenants forego renters insurance: they think it’s unnecessary or too expensive. It so happens that neither of these beliefs are true.

Below, we highlight five common misconceptions about renters insurance and set the record straight on why tenants should get covered.

Myth Number One: Renters insurance is expensive.

Fact: Peace of mind is more affordable than you might think. A renters policy is one of the most affordable types of insurance with an average cost of just $20 a month. That’s a mere $5 a week, which is definitely less than the proverbial daily latte. If your bike gets stolen or your new couch is damaged in a fire, just imagine how relieved you’ll be that you’re covered for such incidents and will be able to replace your stuff.

Myth Number Two: My landlord’s insurance policy will cover my belongings.

Fact: Your landlord's insurance policy covers only the building and infrastructure. If a pipe bursts, if the electrical system causes a fire, or if you’re the victim of a burglary, the landlord’s policy will not cover your personal property. As a tenant, you would have to pay out of pocket to replace your damaged items.

Myth Number Three: Renters insurance doesn’t cover much.

Fact: This is a common misconception, possibly because the premiums are so low. Renters insurance covers a lot more than most people realize. A typical renters policy offers protection from damage or theft caused by many adverse events such as fires, storms, explosions, riots, theft, and vandalism.

Myth Number Four: I don’t own enough stuff to need renters insurance.

Fact: Most people — even studio dwellers — own more stuff than they realize and usually underestimate its value. To replace your personal property could run you tens of thousands of dollars. Take inventory of all of your belongings, going through every drawer, closet and room. Don’t just focus on the big-ticket items like furniture and electronics, include kitchen equipment, clothing, books, and décor too.

Myth Number Five: My renters insurance covers my roommate too.

Fact: Unless your roommates are related to you or their names are listed on your policy, they won’t be covered. If you’re partnered with your roommate and co-own furniture and other property, you could add that person to your policy. To keep things uncomplicated with premiums and potential claims, it’s usually best if roommates get their own renters policies.

There you have it. Protecting your valuables for dollars a month really is a no-brainer. Call a Wawanesa agent today for your quick quote. You’ll be surprised at how easy and affordable a renters policy can be.