When Is Renters Insurance Really Necessary?

Renters insurance is something that a lot of people overlook. Many times, renters want to save money and they decide to skimp on insurance. They think that since they do not own a house, they do not necessarily need a renter’s policy. While it is not required to rent, in some cases it is necessary. How can you determine when it's in your best interest to buy renters insurance?

Normal Possessions

Most renters think that they could probably replace their possessions if their apartment building was burned down. They don't really stop and think about how valuable all of their possessions really are. Could you really replace everything you own out of your paycheck in a timely manner? Think about what you own for a second. Do you have a big screen TV? Do you have a gaming system and a collection of games? You undoubtedly have some CD's and DVD's. How much would it cost to replace your entire wardrobe at once? Your furniture definitely would not be cheap if you bought it all at once. 

While you could probably find a new place to stay rather easily, replacing everything you own at once without any help from insurance is a scary proposition. Even though you never think about it, your possessions really would cost a lot to replace. Even if it doesn't seem like you have that much, you probably have more than you could buy with your current savings. 

Collectibles

Many people collect different things. Baseball cards, stamps, spoons, or anything else. If you collect it, there is someone that is willing to pay for it. Many of these things are worth quite a bit of money. If you have these items just sitting around your house, they are at risk. If a fire were to come along and destroy your house or apartment, you would be left with nothing to replace them. With the help of renters insurance, you would at least be reimbursed for the proper value of these items. If you wanted to replace the collection, you could with the money that you receive. 

Theft

What type of area do you live in? If you are in an urban area, there is a chance that your home could be broken into. When someone breaks into your house and steals your possessions, you are at the mercy of a random event. With renters insurance theft is not an issue. If someone breaks in and steals something, you will receive the fair value for it from the insurance company. When you do not have insurance, you are leaving it up to the police to retrieve your stolen property in good shape. Many times, stolen property is never recovered. Therefore, you just lost something valuable and received nothing in return for it. If you are in an area that is known for crime and theft, renters insurance makes a lot of sense.

Renters Insurance Cost

To determine if it's something you want to get, check out the cost. Call a few different companies and get some quotes. Farmers renters insurance, for example, is well known for having good deals from time to time. Check out a company and decide if renters insurance is right for you. 

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