4 Reasons Renter’s Insurance Is a Waste of Money

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Renters insurance is a good product to buy for most renters. It provides liability protection, as well as the coverage you need to replace your belongings if someone robs your apartment, or if there’s a fire. Some policies will also provide you with money for temporary housing if you’re out of your apartment due to damage. However, it’s a waste of money for some renters for these 4 reasons:

1. No Guests

If you’re the type of person that doesn’t invite people over, then there’s no need to worry about liability coverage for accidents with  guests. Liability protection is intended to protect renters who have guests over, in the event that those guests suffer bodily injury or property damage while visiting. However, you may not want guests over at all, and having renters insurance “just in case” is a waste of money, if you’re considering it for liability protection.

2. Low Value on Personal Items

Renter’s insurance is a waste of money if the total value to replace your personal items is low. Some renters underestimate what it would cost them to replace everything they own. An average apartment needs $10,000 worth of coverage. However, if your apartment living situation is temporary or if you’re just starting out, and the value of your belongings is less than $2,000, you may not need renters insurance. One could argue that premiums less than $15 a month and a $100 deductible is not a waste, even for belongings that total $2,000. However, if you don’t care to replace those items, then it is a waste of money, and that monthly renters insurance premium could be used to pay other bills.

3. No Chance You’ll Need it

There is a chance that you’ll never have to file a claim under your renters insurance policy. For this reason, you might consider it a waste of money to make monthly payments on a policy you won’t use. It’s true that some renters pay premiums for 10, 20 or 30 years without filing a claim once. However, the fact that you may never need to file a claim shouldn’t be the only reason that stops you from obtaining a policy. You should couple it with a low value on your personal items and the fact that you don’t plan on having guests over at least. You don’t know what the future holds, and you’re gambling if you say you’ll never need renters insurance, because each situation is different.

4. Difficult to Get Paid

Some renters insurance make it difficult for you when you file a claim, and getting the money you expect under your policy is not always the case. It’s a waste of money to buy a policy from an insurance company that has a pattern of not paying out money, or delaying claims and payments for unreasonable amounts of time. If you do buy renters insurance, be sure to research the company and only go with companies that have a solid reputation.

Don’t waste your money on renters insurance policies from companies that don’t meet your needs, considering the above reasons. On the other hand, if none of these reason apply, then it’s not a waste of money at all, and you ought to own it.


2 Responses to “4 Reasons Renter’s Insurance Is a Waste of Money”

  1. June 15, 2010 at 6:36 pm, Hill said:

    I would like to point out that none of these look at natural disasters. My freshman year of college a tornado hit my dorm, and I lost everything. Without renters insurance I would have been out around 8,500. No area of the country is completely immune from floods, tornadoes, hurricanes, earthquakes, fires, and severe thunderstorms.


  2. July 22, 2012 at 12:08 pm, Mama C said:

    Wow, you had $8500 worth of stuff in your dorm room? Was most of it books? I guess things are different now because my freshman year I don’t think I had a $1000 or less and most of it was books. Go figure.


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