Weighing the cost of Renters Insurance

By Compuquotes Team on April 2nd, 2008

Renters Insurance

One of the biggest reasons that people decide not to purchase renters insurance is because they're sure that the value of their property won't match the cost of the insurance. This simply isn't the case in most situations, though, and a number of renters have only realized this after their home or apartment has been robbed or they've been the victim of a natural disaster such as a fire or a tornado. Before you just blatantly assume that your property isn't worth what you would pay for renters insurance, you should at least take the time to make a comparison of the two.

  • Determining the value of your property

While you may not think that you have a lot of property, you might be surprised at how quickly little things can add up. Think of what it would cost to replace your entire CD or DVD collection, or to have to go out and buy a new television and VCR or DVD player. Make estimates of how much it would cost to replace any collections that you have such as these, as well as any appliances that did not come with your house or apartment. Add to that the cost of any furniture that you would have to replace (not counting anything listed in your rental agreement as being furnished with the house) as well as any dishes, silverware, and similar kitchen supplies that you have. Be sure to include the cost of any other property that you have as well, and make note of anything that would be difficult if not impossible for you to replace. Once you've finished with your estimates, you'll probably have a much higher value for your property than you would have thought.

Now it's time to find out how much renters insurance will cost. Begin contacting insurance agencies in your local area and asking for renters insurance quotes as well as searching for insurance providers online. Take into account that renters insurance often doesn't cover certain types of natural disasters such as floods, so if you're in an area that could be prone to flooding you might want to consider additional coverage for that as well. Many renters insurance policies are billed annually, and in a number of cases work out to be between $10 and $20 per month.

  • Deciding if the insurance is worth the cost

Obviously, not everyone is going to want to pay for renters insurance. It is at least something to think about, though, when you consider the combined value of all of your personal property and the relatively low cost of renters insurance when compared to other insurance types. It ultimately comes down to whether or not you want the additional protection that renters insurance can provide or if you aren't concerned about the protection and would rather take things as they happen. While renters insurance can be useful, it isn't for everyone and only you can decide whether or not renters insurance is going to be right for you.

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