Is renters insurance worth it and if so, why? The renters insurance is a simple insurance policy that protects the personal belongings of a renter. While it is commonly mistaken with homeowners insurance, it has nothing to do with where a tenant lives. It’s simply to protect the personal belongings of the tenant such as furniture, clothing, electronics, anything that the tenant has in the property.
Whether or not it’s worth it is up to you but we can comfortably say that it is because for the amount you pay, you get a high value of protection.
Cost of Renters Insurance
The cost of renters insurance make it worthy of purchasing for the value you get. On average, the renters insurance cost about $30 to $40 a month with up to $40,000 coverage and $1 million in personal liability coverage.
The $40,000 may not include all of your personal belongings though such as jewelry and gold but your furniture, household items, clothing, electronics, etc. will be protected.
What is personal liability coverage?
Personal liability coverage is a simple coverage type that protects you from legal problems.
Assume a guest came to your house and fell down the stairs and you were sued by the individual. The legal fees, attorney costs, potential penalties are paid by the personal liability coverage. Although it’s doubtful that you will need this type of insurance, you never know but the coverage is too high to miss out on.
All and all, the renters insurance is very much worth it. The annual premium is considerably low for the protection you get in the end. Some renters insurance policies even cover floods and hurricanes. Make your research and see which renters insurance policy suits you the best.