Many individuals make assumptions about how renter's insurance works without knowing all the facts. It is easy to fall for these assumptions since they are so prevalent. Here is the truth behind three of the biggest myths about renter's insurance:
Myth #1: "I don't own anything that is very valuable."
Many individuals wrongly assume that they have to have lots of jewelry lying around or own priceless works of art in order to have enough belongings to need renter's insurance. However, renter's insurance is not just designed for high-end items, it is designed for all items.
Sit down and make a list of everything you own. Start in the bedroom and work your way through your house. Don't forget about the little stuff, like the towels in the bathroom, the decorations throughout the house, and all the little gadgets you keep in the kitchen. Write down everything.
Once you have written down literally everything you own, go back and write how much it would cost you to replace each item today. Add up the total cost to replace literally everything that you own. If you don't have that much disposable cash on hand, then you could benefit from a renter's insurance policy. These policies are designed to help ordinary people, like you, to replace all of their belongings should something ever happen.
Myth #2: "My landlord has insurance, so I don't need any."
Next, many individuals wrongly assume that if their landlord has insurance or their roommate has insurance, they are covered.
The insurance your landlord has on the home or apartment that you rent is designed to protect your landlord if something should happen to the physical structure of the home. For example, if the home you are renting were to catch on fire, your landlord's insurance policy would cover the loss of the home. However, it would not cover your personal belongings nor would their insurance policy cover your housing costs until you can find a new place to live. A landlord's insurance policy is designed to protect the physical structure of the building, not to protect you.
Myth #3: "My roommate has insurance, so I don't need any."
Once again, many people assume that if their roommate has renter's insurance, they are covered as well. However, that is not how renter's insurance policies are designed to work. Renter's insurance polices are designed to specifically provide protection to the people who are listed on the policy, not everyone who lives at the same address.
Unless your name is specifically listed on their policy, you are not protected by their renter's insurance coverage.
If you rent a home or an apartment, you need to purchase your own renter's insurance policy in order to protect your belongings and yourself. Your belongings probably are a lot more valuable than you realize. The only way you can really protect yourself is with your own insurance policy (available from agencies like Axis Insurance Agency); don't assume that your landlord or your roommate's policies will protect you.