Renting an apartment is expensive enough as it is these days. So why would you add renter’s insurance to your long list of expenses?
While skipping insurance can save you some spare change every month, living without this safety net could cost you a lot more in the long run. This type of insurance is not required by law, but it is a good idea to have, especially if you are renting or looking for apartments for rent in an area where there can be crimes or where natural disasters are common.
Accidents Can Happen to Renters
Nobody wants to think about bad things happening to them, but accidents, bad luck, and natural disasters are a reality you must consider.
In some cases, these emergencies are specific to your location. For instance, if you live in Florida, hurricane season lasts from June 1 to November 30. Hurricane Ian, the latest tropical cyclone to batter the state, flooded millions of homes and caused billions in damage.
In other cases, poor maintenance and faulty repairs could lead to a host of preventable damages — think a roof caving in and leaving a hole in your ceiling, or faulty wiring frying all your electronics.
Your Landlord May Cover Less Than You Think
If you ever experience massive flooding or structural damage, your landlord is liable for the damage to the building. They have to repair the building so that it’s safe and comfortable for you to live in.
But that’s where their responsibility ends. Your landlord doesn’t legally have to cover damage to your personal property.
Let’s say you live in Florida where your apartment had a major flood after Hurricane Ian. While your landlord must renovate the building, what about all your stuff? If your TV, laptop, furniture, and wardrobe are damaged by flood water or sewage, you’ll have to replace them on your own dime.
You might also have to find and pay for another place to live, like a hotel or another apartment, while your landlord completes the repairs.
Would Your Savings Cover These Costs?
Replacing a laptop or couch is hard enough when that’s all you need to buy. Hopefully you have an emergency fund. But even a well-stocked savings account might struggle with replacing all your belongings at once at the same time as providing first and last month’s rent for a new place to live.
If your savings come up short, you may rely on a personal line of credit in Florida. You can put the essentials on your line of credit, making it a convenient safety net in an emergency.
However convenient a Florida line of credit may be, it only postpones payment for these things. Repaying your line of credit simply delays paying out-of-pocket for emergency expenses with your own money.
What Does Renter’s Insurance Cover?
Recovering from an accident or disaster is a lot easier with renter’s insurance. The typical policy will cover the replacement or repair of personal property damaged in the rental, including electronics, furniture, and clothing.
It may also cover medical expenses if you were injured in the rental at the time of the accident or disaster. Some may even cover “loss of use” expenses, which pays for another rental unit if your apartment deemed unsafe.
Will You Get Renter’s Insurance?
Depending on where you live, renter’s insurance can cost anywhere between $12 to $34 a month. While Florida is one of the more expensive places to insure, its average of $27 per month is less than dinner for two at a restaurant. Whatever you pay, it protects you from costly unexpected expenses and line of credit dependence following an emergency.