Moving on Out

Are you moving out? Finding your new apartment or moving up and renting a house? Once you have all your budget items laid out, think about adding one more – insurance.

 

Why buy renters insurance? You have clothes to insure and most people have furniture, even when renting a furnished apartment. If there is a fire or a burglary and your “stuff” is gone, would you have the money to replace everything? Even a gofundme page may not raise enough money to replace everything you own. 

There is a difference between actual cash value and replacement cost for your belongings.  Think of it this way, a ten year old chair you bought at target for $50 is worth maybe $3.00 but to replace it today at Target could cost $150.00.  If you pay extra for the replacement cost your coverage for that chair is $150.00 not $3.00.

 Another reason to have rental insurance is liability coverage; we have become a society that sues. You may not think you need it but you would be surprised by the crazy claims that occur. For example: a burglar breaks into the window of your apartment he gets cut on the glass you dropped that morning and did not have time to pickup before leaving for work. You left your apartment unsafe. The burglar sues you for the glass that cut him and the resulting stitches he needed. Now the case may get thrown out but in the meantime you will have to pay to defend the case. Your renters insurance would pay for the defense. 

 Suppose you are playing golf and your swing is off one day. The next thing you know the golf ball is soaring overhead into a car’s windshield.  Your renters insurance liability coverage would pay for the windshield.  If you own a pet, renters insurance will pay for the injury resulting from a cat scratch or a dog bite.   

Back to the budget.  The cost for renters insurance is surprisingly affordable.  It runs about $150 a year.  The cost depends on your coverage but $150.00 is an average premium.  Insurance companies usually have payment plans to make it easier on your monthly budget.  Adding one more line to your budget is easier than you think.