Do you need Renter’s Insurance?

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A third of American households are now renting but not everyone feels they need to have renter’s insurance. But this type of insurance covers more than just your personal stuff. Our Certified Financial Planner Denisa Tova is here to tell us why you can’t afford not to have one.

Here's why you need renter's insurance:

The renter’s insurance will replace your personal stuff if there was a fire, water damage, electrical surge, vandalism, theft in your apartment. I know that many people feel that spending money on renter’s insurance would be a waste, because their personal stuff isn’t worth all that much. But the insurance covers more than that:

It will also cover living expenses if you have to temporarily move to another place

It will cover medical expenses if someone falls and gets injured, or bitten by your dog, on your premises. It will even cover the court fees if that person sues you.

It will cover your luggage and other personal belongings if they get lost while you travel.

The best part? It’s inexpensive. The premiums could be between $17-$30 per month depending on what you need to insure.

What should you look for in a renter’s policy when you are shopping around?

Ask about these discounts:

For combining car and renter’s insurance

For being non-smokers

For increasing the deductable

For having an alarm system

For signing up for automatic drafts to pay your bills

You may consider writing a list of your personal items (at least the more expensive stuff), or take photos, and how much you paid for them. This will come handy if you have to file a claim.