Do you have something? Otherwise, you can stop reading. But… if you do own physical items, and you’re renting, you need renters insurance.

Renters insurance is a great (and inexpensive!) way to protect your belongings and your financial resources. Because let’s face it. It will definitely be very expensive to convert all of your points if they are ever destroyed in stoppages or taken.

Let’s look at the 7 factors that renter insurance you need!

But first…

Renters insurance is a type of property insurance that pays to change your points if they are damaged, tampered with, or taken away when you rent. It protects you from monetary handling after unforeseen catastrophic effects such as outages, power surges, backup dumps and explosions. Without renters insurance, you can just dip into your savings to change everything you spend. Bad.

Unlike auto insurance, renters insurance is not required by special laws or the government. However, a growing number of landlords are requiring individuals to have tenant insurance before they finalize their lease.

Renters insurance may not be necessary, but it’s still important. If you’re asking yourself, Do I need renters insurance?, here are 7 big factors it’s a wise move.

If we think our stuff really isn’t that valuable, then we find it easier to change it. But the truth is, for most people, our clothes, furniture, and electronic devices are worth thousands of dollars. Changing everything is certainly not an easy job. But many people still underestimate our stuff. This is partly because we bought it over a long period of time. We don’t really see how much it’s worth unless we really stop and consider it.

Another factor people don’t see the need for renters insurance is that they assume (incorrectly) that their landlord’s insurance will cover them. Not real. Your landlord’s insurance only covers their building, not your belongings—it doesn’t matter who’s responsible.

Renters insurance also protects you against a lawsuit that breaks your budget. For example, if someone is injured on a property you rent, they can take legal action against you. The individual liability component of renter’s insurance will help with legal expenses as well as court decisions if you are found guilty and need to spend a lot of money. Liability also protects you when other people’s goods are damaged. Like if your child accidentally breaks an expensive flower holder at your friend’s house, you’re covered.

Protect your home and budget with the right protection!

Also for tenants who have more money in savings, the cost of a suit or dog attack can be quite a monetary issue. And renters insurance also covers some of the clinical costs for this type of accident.

Renters insurance is one of the most affordable of all types of insurance that you can get. It only costs about $15 a month.1 Likewise if you’re trying to pay off the training loan, or you’re saving for your first home deposit, you can put aside 50 cents a day to secure your belongings.

Another factor you should get renters insurance is that you may need. Again, more landlords require tenants to own them before their application is approved.

Did you know that renter’s insurance covers your belongings as well when you travel? So if your favorite handbag is rubbed during a tour of the Louvre Gallery in Paris, your renters insurance will pay to replace it. Very nice!

If your place is completely damaged, requiring you to stay somewhere else for a while, renters insurance will start with something called extra living expenses (or loss of use coverage). This will be spent on points such as resort lodging and dining as you wait for your home or house to be rebuilt or repaired.

Since we’ve seen how valuable renters insurance can be, what else does it cover?

Here are some of the points covered by standard renter’s insurance coverage.

Everything you own, to some extent. Your electronics, the furniture, that classic baseball card collection. Renters insurance has you covered in case something catastrophic happens at your place. After you pay the insurance deduction, your insurance company will reimburse the total until you change your points.

With liability protection, you will be protected from accidents. So if someone sues you, renters insurance will help with those legitimate costs.

As we’ve learned, renters insurance also provides you with monetary security if you are briefly unable to live in your home. This is a good idea for points like resort fees and places to eat.

Renters insurance won’t cover flood damage unless it’s something you trigger. Like if you accidentally flood your home, renters insurance will definitely help keep it in check. If you’re not responsible, and it’s splash damage from an architectural problem, your landlord’s insurance will cover it.

Renters insurance also covers things like theft, certain pieces of belongings you have in the storage unit, and food damaged due to a power outage.

Right now, you may be wondering, How much renter’s insurance do I need? We’ll walk you through the exact way to calculate it.

Coverage of individual properties depends on how much you own. So the amount varies for everyone. You have to ask: If I give up everything, how much should I get back?

Start by jotting down your stuff. Make time for a weekend break, grab a cup of coffee, and make a list of everything you have: socks, cutlery, wall shelves, publications, toaster, mattress, electronics—everything!

And take pictures and video clips too. By doing this, you have a document on what you have in case your claim is ever disputed.

Once you have a list of all your mundane items, estimate how much each item is worth. Also if you think some points only add up to the bean hillside, include it anyway. You will be amazed how quickly the points can be accumulated.

Once you know the value of your item, you’ll know how much coverage you’ll need. You should also know the difference between real cash value (ACV) and replacement cost (RCV) coverage. ACV considers devaluation, so your insurance provider will only write to you about the price of your couch or TV when it’s broken or picked up. On the other hand, RCV will pay you enough to actually buy a new TV.

You must compete for at least $100,000 in liability coverage. But if you feel better about having more protection, you can continue to increase the limits of your liability.

If you live in a country location prone to flooding or earthquakes, you should get an additional layer of flood insurance or earthquake insurance to protect your belongings. (Remember, owner’s insurance will not cover your points if they are damaged.) You can also get extras to protect yourself against sinkhole damage.

Finally, if you have larger finished items (such as art, antiques or expensive jewelry), you should really seek additional protection. The scope of a property has what is called a sub-boundary. This means the insurer will only compensate up to a set total for changing certain categories of points, such as jewelry.

You’ve worked so hard to get your stuff that it’s all gone overnight. And the price of changing everything can prevent you from achieving your monetary goals. Don’t let this happen by chance.

Contact our property insurance representative today!

If your roommate has renters insurance, they have insurance for themselves—not you. While it may seem like sharing renters insurance coverage with roommates is a great way to save money, it really isn’t. Mixing insurance with a roommate is like mixing oil and water—it doesn’t work. You’re better off just getting your own plan.

If you go to college and stay on campus, your belongings may be covered under your parents’ property insurance coverage. However, if you live off campus, you will have to get your own package.