Oh, insurance. It’s a necessary yet expensive part of our lives. We need it to protect our valuable assets, such as our health, vehicles, homes, and even pets. However, when it comes to renting, there’s an odd phenomenon.
While 95 percent of homeowners have homeowners insurance, only 49 percent of renters have renters insurance, according to a study by the Insurance Information Institute. Why are only half of renters insuring their valuables? And should they be?
What is Renters Insurance?
Renters insurance covers the cost to fix or replace your belongings if a burglary, fire, water damage, or other specifically covered event occurs. It includes items like clothing, furniture, or electronics. Another type of renters insurance is liability, which protects you from accidents. For example, liability insurance would come into play if a guest gets injured on your trampoline and needs medical attention.
This insurance also covers the expenses you would incur if you were forced to vacate your home due to an occurrence included in your policy. So, if you can’t stay at your home because there was a fire, your insurance would cover your hotel costs (up to a certain limit, of course).
Now that you know what it is, the big question is: Should you get renters insurance?
Pros of Renters Insurance
Here are some reasons why you might choose to opt in to renters insurance.
- Your stuff is probably worth more than you realize. According to State Farm, the average person’s belongings are worth $35,000.
- If an unexpected event like a fire or pipe burst occurs, insurance provides you with the means to replace everything that’s been damaged.
- Coverage is relatively inexpensive. In Texas, the average monthly cost is about $19.
Check out the Texas Department of Insurance for some great insights on renters insurance in the Lone Star State.
Cons of Renters Insurance
The cons of getting this type of insurance coverage mostly involve the cost of extra protection.
- You have to pay a premium. As with most types of insurance, it’s ultimately a good thing if you don’t have to put your policy to use. However, unused, it can feel like a waste of money.
- There’s a deductible. This is the amount you pay before your policy is able to help.
- It doesn’t travel with you. If you move, you’ll need a new policy.
Yes, renters insurance is another bill to pay. However, with some policies’ annual premiums of around $200, it may be a prime example of “better safe than sorry.” If you’re still not sure, a good place to start the decision-making process is by taking inventory of your belongings and figuring out their value. If you can afford to replace everything should a terrible event happen, you may not need it. But if your stuff has a high value and you can’t easily replace it if something happens, you should definitely consider renters insurance.
Looking for a Place to Rent in Houston?
Whether you’re renting a home, apartment, or even office space, Ameritex Movers is here to help you get settled in. Call our friendly movers today to help you move anywhere in the Houston area. Fill out the form above for a free moving quote.