Why Renters Insurance Is
Worth Its (Low) Cost

Renters are more at risk than homeowners

Over the past several years, two of my good friends experienced apartment fires that ruined parts of their homes (although thankfully did not injure either of them). Maybe that's part of the reason why I think of renters insurance as more of a necessity than a luxury. For a relatively low amount-my renters insurance in Washington, D.C., costs around $100 a year-you can protect yourself financially from potential disasters striking your home.

Most college-age adults, however, don't bother to get renters insurance. According to a new study from Allstate Insurance, two in three say they have no insurance protection whatsoever. At the same time, about half said their belongings are worth more than $10,000 and the vast majority said that they could only afford to replace some of those items if they had to.

Allstate, not surprisingly, wants to encourage young people to insure themselves. They point out that many people are willing to pay a couple hundred dollars a month on clothes, but aren't willing to shell out anything to protect themselves from the risk of theft, fire, and other catastrophes. "It's a shame because renters insurance is one of the smartest investments people in this situation can make and so few take advantage of it," says Julie Parsons, a vice president at Allstate.

Renters, in fact, are more at risk than homeowners. The Bureau of Justice Statistics reports that renters are 50 percent more likely to experience theft than those who own their homes.

So, what's stopping renters from taking out insurance? Allstate's survey suggests it has a lot to do with confusion over how much it costs. One in three survey respondents thought the insurance would cost much more—as much as 15 times more—than it actually does. To get a sense of how much it would really cost them, consumers can call insurance companies or visit their Web sites to get price quotes. The cost typically depends on region, the value of what's being insured, and other factors such as whether the building has a doorman.

About the Author:
Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.

Source:
Palmer, Kimberly. "Why Renters Insurance is Worth Its (Low) Cost". U.S. News. 09/09/09 <http://bit.ly/2xs8Nz>.

View original article here.

Related Articles:

• Get the Facts About Flood Insurance
• Basements May Flood if Drainage Is Poor
• Salvage Valuable Flood-Damaged Items
• Hail Damage To Roof Shingles
• TES (Thermal Energy System) - World's Fastest Drying System!
• Water Damage Terminology - We Can All Speak the Same Language Now!
• Water Leak From Shower Above Ruins Ceiling
• Helping Hand Program: NuBilt Rescues Water-Damaged Condo Owner in Aurora
• Unnoticed Broken Sprinkle Floods Basement

   
   Restoration & Construction
   2134 S. Valentia St.
   Denver, Colorado 80231
   Phone: 303.368.4688
   Fax: 303.368.0904
   info@nubilt.com

Within the state of Colorado we serve the following communities: Arapahoe, Arvada, Aurora, Boulder, Brighton, Broomfield, Castle Rock, Centennial, Cherry Hills Village, Columbine, Commerce City, Denver, Elizabeth, Englewood, Erie, Evergreen, Federal Heights, Foxfield, Franktown, Glendale, Golden, Greenwood Village, Greely, Lafayette, Lakewood, Littleton, Longmont, Louisville, Loveland, Morrison, Niwot, Northglenn, Parker, Sheridan, Superior, Thornton, Westminster, Wheatridge, and Windsor.

By Zip Code: 80202, 80203, 80204, 80205, 80206, 80207, 80209, 80210, 80211, 80216, 80218, 80219, 80220, 80223, 80224, 80227, 80230, 80231, 80235, 80236, 80237, 80239, 80246, 80249, 80260, 80264, 80290, 80293, 80294

For a complete list of the Zip Codes we serve in, check our contact page.