Typical Renters Insurance Myths You May Mistakenly Believe

A lot of renters don't get renters insurance because they believe some typical myths that lead them to think they don't need it. As you will see it pays to be informed as these myths are just that, myths or false beliefs. Here are a few of the typical myths about renters insurance that many people fall for:

1. My landlord has insurance so in anything happens the landlord is responsible and his policy will cover me. This isn't true. The landlords policy covers the physical building, but not your possessions. Even if the cause of your loss is blamed on the landlord, he won't pay for replacing your possessions. And, if it's determined that a fire or flood, for example, was caused by you, - by mistake- then the landlord might come after you in a lawsuit to recover his damages. Liability is another reason not to rely on your landlord's insurance. When someone finds you liable for injuries or damage, you can't rely on your landlord for help.

2. Insurance costs money and I don't have extra money for things like that. The average cost of renters insurance is $160 per year for around $15,000 in coverage. Some policies cost less, some more. It all depends on how much you own. In you live in a one-bedroom with a computer, TV and stereo you'd probably pay closer to $125 a year. Broken down into monthly installments, that's the cost of a small pizza. And, even if you have a lot to protect and your policy runs you $250 a year the monthly cost to you is around $20 – or the cost of a large pizza. For more coverage, you'll pay more. A policy, for example, that costs $350 a year can give you $50,000 in coverage.

3. My building has never had a problem and I live in a good neighborhood. For this exact reason, you need a renters insurance policy. Insurance is a cushion for when the unexpected happens. If you building hasn't experiences a fire, robbery or water damage, then an unexpected event is more likely to happen.

4. Nothing will happen to me. Many like to live risky, but everyone frowns upon having to empty their wallet when something does happen. Renters are responsible for the financial burden of losses created by their own negligence – or by accident in their own dwelling. Apartment fires and theft are the leading reasons renters suffer losses. Even when those losses are caused by a grease fire in a neighboring unit, you are responsible for your losses. In this day and age, it's hard to bank on something not happening, or something not happening to someone else, which in turn effects you.

5. My roommate has a policy so I don't need one. Not necessarily true. While every policy differs, most will not cover you unless you are listed on the policy. Some insurance companies now offer joint policies for cohabitating couples.

6. I really don't own enough to justify a policy. Think about what it would cost to replace all of you possessions, even if those possessions originally came from your parents or someone else. If having a policy to cover your possessions does not appeal to you, at least think about having a policy to cover your liability. You can't control who will sue you.

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