So, you’re moving into an apartment and are not sure whether its worth getting renters insurance or not. There are major benefits to having renters insurance.  According to the 2014 Insurance Information Institute Poll, 95% of homeowners have a homeowner’s insurance policy whereas only 37% of renters have renters insurance.

You may ask why so few renters have insurance and one of the most common reasons is simply due to the assumption that they are covered by their landlord’s policy. In reality, the landlord’s policy generally only covers the building itself. You also might be underestimating the value of your belongings; your wardrobe, electronics and furniture are all things that can add up in value, which you will get no compensation for if your personal property is damaged without being covered by renters insurance. Here are 4 good reasons why you should get renters insurance.

  1. Its not as expensive as you might think

The simple fact that renters insurance means another bill to pay may scare some away but it is not as expensive as many might think. The reason renters insurance is significantly less than home insurance is that it does not cover the building itself.  According to 2011 figures reported by the National Association of Insurance Commissioners (NAIC) in 2013 the average renters insurance policy costs $187 per year.  The amount  you will pay will depend on a number of factors:

  • Where you live
  • The type of coverage you want
  • How much coverage you need
  • The amount of your deductible
  1. Loss of personal property is covered

Although you may think you do not have enough belongings to need renters insurance, the value of your possessions adds up quickly and will be costly to replace.  According to the average tenant has up to $20, 000 of personal property. Personal possessions that are generally covered include:

  • Clothes
  • Jewelry
  • Electronics
  • Computers
  • Furniture

Hazards that are usually covered by renters insurance include:

  • Damage caused by aircraft and vehicles
  • Explosions and falling objects
  • Fire, lightning, volcanic eruption, windstorm and hail
  • Riots
  • Smoke
  • Theft and vandalism
  • Weight of ice or snow
  • Water damage
  1. You are not covered by your landlords insurance

Your landlord has to have insurance for the building.  Their insurance covers the building itself as well as personal liability incase someone is injured on the premises – not your possessions.  If anything happens to your things inside your apartment you will be at a loss without renters insurance and will need to pay out of your own pocket to replace what you lost.

  1. Liability coverage

Standard renters insurance policies usually include liability coverage in the event someone injures him or herself in your apartment. The amount of coverage you have will depend on your policy but will include liability coverage as well as medical expenses.  The more liability coverage you request, the more you will pay.

Just like car insurance, in order to find the best policy and price to meet your needs you must do some renters insurance shopping. Be sure to know what your policy covers. Does it offer replacement cost coverage (RCC) or actual cash value (ACV)? When you choose RCC there is no deduction for depreciation whereas if you choose ACV with your insurer deprecation is factored into your payment.  Choose the renters insurance that is most beneficial to you.