Insurance is Not Just for You and Your Car

Most of us at are probably renters.  We might be testing out different career paths or deciding which graduate school to attend, but the bottom line is that most of us have neither the funds nor the commitment to purchase a home and stay in one place indefinitely.  Instead, we hold a premium on being mobile.  But nearly two-thirds of renters do not have renters insurance and many landlords do not require this.  Here are three BIG reasons why renters need insurance:

1. Renters insurance covers the costs of replacing your personal property, such as clothing (think of all your designer jeans and business suits), furniture, electronics (laptops, HD television), etc, in the case of theft, fire, flood, and a variety of other situations.  BUT make sure you select this option when you purchase your policy because some renters insurance only cover the value of your property at the time it was damaged or stolen.  The insurance company will usually help you in estimating the value of your property.
2. Renters insurance also offers protections against persons who are injured on or off your property. This part comes in handy especially if you own a pet that has injured someone on your property.  It also comes in handy if you injured someone off your property, such as accidentally running into someone and spilling hot coffee all over them.
3. Renters insurance is actually not that expensive.  For less than $250 a year, depending on the neighborhood, city, and region you live in, you can probably get $20,000 in replacement costs and $100,000 in personal liability coverage.

Start by checking whether your auto insurance company offers renters insurance and whether they offer a discount for getting more than one policy from them.  You can also get quotes from several companies online at InsWeb.com or NetQuote.com.  If you are starting out on an entry-level salary, you probably can’t afford to replace your personal property or pay someone’s medical bills.  From this perspective, no matter how tight your budget is stretched, the $250 is a bargain and a worthy expenditure.