Think You Can Do Without Renter’s Insurance? Here Are Two Reasons To Reconsider

Renter's insurance is one of those things that many young, single people think that they can do without. After all, if you're just starting out, it can be difficult enough to afford the day-to-day costs of living on your own—renter's insurance seems like a cost you can do without. If this applies to you, here are two reasons to reconsider.

1. You probably own a lot more than you think you do.

When people think about what they might need insurance to replace, they usually only think about the big-ticket items that they own, like their computer system or television. However, if you suffer a major loss, you may come to realize that you own a lot more than you realize and that replacing those items is a lot more expensive than you thought. 

To get a more accurate idea of how much you own and what it would cost to replace things, pick a room like your bedroom and grab a notebook, a pen, and your smartphone. Make an inventory of every item that you have, including pillows, pillowcases, sheets, replacement sheets, blankets, and so on. Don't forget to list the bed, any other furniture, lamps, or odds and ends that you keep around. If you have a book collection, a TV, a DVD collection or other media devices, add those in. Open your closet and take an inventory there, too, down to the number of socks you own.

Now start searching online to see how much the replacement cost would be for each of those items. If you've been a thrifty shopper, obtained a lot of items used, or acquired many of your bedroom items slowly over the years, you may quickly find that you've underestimated how much it would take to replace everything you own at once—and that's just in one room.

 2. Your landlord is under no obligation to cover your personal losses.

What happens if the fridge and freezer unit that comes with your apartment kicks out while you're out of town for the weekend, right after you did your monthly grocery shopping. Groceries for a single male in the age range of 19-50 cost an average of $235.60 (for moderate spenders). While your landlord is responsible for repairing the fridge and freezer unit, he or she isn't required to replace your spoiled food.

Similarly, if you live in an apartment complex and the guy above you forgets he's running a bath and floods your living room, your landlord has to repair any structural problems—like a damaged ceiling. If your computer and television happened to be under the "wet zone" and got destroyed, your landlord isn't responsible for your losses. You can probably take your neighbor to small claims court for the damage, but you may have a hard time collecting. If you rely on your computer for anything important, and many people do, you can't wait around hoping to collect until you replace it.

For more information about renter's insurance, consider contacting an insurance agent in your area.