If you’re renting your home, you may think you don’t need insurance coverage since you don’t own the property. However, this is commonly not the case.
Even though you are not the owner, obtaining insurance coverage is still essential to keep you and your belongings safe from incidents such as theft, vandalism, and damage. Options like AAA renters insurance can help you avoid paying out of pocket for these incidents.
If you’re on the fence about purchasing a renters insurance policy due to things you’ve heard in the past, use these debunked myths to help determine whether purchasing coverage is best for you.
Myth – My Belongings Are Covered in My Landlord’s Policy
Many renters may believe their landlord’s insurance covers their personal belongings. While it’s true that your landlord likely has their own policy, it’s also likely their coverage explicitly excludes any of your belongings.
Landlord insurance will cover many things, but your personal items are not included on that list. If your dwelling is damaged, your landlord’s insurance will typically pay for the damages and even the loss of income.
Your landlord’s policy will not cover items inside the home that do not belong to them. To avoid paying to replace all your belongings out of pocket, you can purchase a renters insurance policy to help cover the costs.
Myth – My Renters Insurance Won’t Cover Enough
A common misconception when it comes to renters insurance is the amount of coverage you receive. Many people may believe coverage only extends to a small number of personal belongings, but the truth is that renters insurance covers much more than just your property.
Even just a basic renters insurance plan will cover a wide variety of circumstances that may occur.
Your Personal Belongings
Suppose your belongings, such as furniture, clothing, electronics, and other valuables, are stolen or damaged through no fault of your own. In that case, your rental insurance will help to cover the cost of replacing these items.
Medical Expenses
You could be liable for unexpected bills like medical bills if someone is injured on your property. Renters insurance will help to cover medical costs so you can avoid paying them out of pocket.
Additional Living Expenses
Your landlord’s policy may cover the cost if your building is damaged, but you will still likely need to find somewhere to stay while repairs are being carried out. Renters insurance offers coverage for costs like hotel expenses in the event your home is uninhabitable.
Personal Liability
Similar to covering medical expenses, personal liability will help if someone is injured on your property. However, personal liability can help cover legal fees rather than medical ones.
All these options are included in a basic renters insurance plan, making the coverage excellent for a variety of possible scenarios.
Myth – My Roommate’s Rental Insurance Is Enough
Many people looking to save money may opt to live with a roommate. Sometimes this is a close friend, family member, or significant other. No matter who you live with, it’s important not to fall into the myth that your roommate’s rental policy will extend to you.
If your name is not listed on their policy, their coverage will not help you in the event of damaged, stolen or lost possessions. Their insurance won’t help if someone you know is injured on your property or you need temporary housing.
There are ways to ensure both you and your roommate can have proper coverage, like purchasing separate policies or obtaining a joint renters policy. Whether you choose to share or separate your coverage, it’s essential to ensure all your bases are covered through your policy.
Myth – Rental Insurance Isn’t Worth the Cost
There are various reasons you may believe purchasing a rental insurance policy isn’t worth the monthly premium. However, having coverage can help you avoid paying high out-of-pocket expenses in the event of a disaster.
The Chances of Disaster Are Slim
A frequent reason people may believe renters insurance isn’t worth the cost is the belief that bad things never happen. It can be easy to have the mindset that your chances are slim. However, chances for a disaster are rarely zero.
It may not be ideal to think about, but if you live in an area with bad weather, your home could be damaged. Also, your odds of theft or vandalism increase if you live in an area with a high crime rate.
All of these possibilities are why having renters insurance is worth the cost. Believing something bad will never happen is a positive mindset, but it doesn’t offer protection if disaster strikes.
The Cost of Renters Insurance Is Too High
Another common reason many may believe renters insurance isn’t worth the cost is that they don’t realize that the policy is affordable. It’s a common misconception that rental insurance is extremely expensive to purchase.
Renters insurance typically doesn’t cost as much as many people assume. Most coverage options range from $15 to $20 per month, making it an affordable way to protect yourself and your belongings.
My Belongings Aren’t Worth That Much
Everything in your home is still valuable and worth protecting, even if you purchased it for a low price. But many people may think their belongings are not worth the insurance coverage because they are not expensive.
Even if you didn’t spend a fortune on your possessions, they would still be challenging to replace entirely out of pocket. Having renters insurance ensures that your belongings — no matter how low their cost — will be replaced without you needing to drain your savings account.
Debunking Common Renters Insurance Myths
If you choose to rent, you may think renters insurance is unnecessary. There are many myths surrounding this coverage that cause people to believe it’s not worth purchasing.
However, having renters insurance can offer you protection and coverage from many potential disasters, such as theft, vandalism, weather destruction, and injuries. The coverage also typically comes at a low monthly price, making it an affordable expense to protect you and your belongings.
Without renters insurance, you may find yourself paying to replace your possessions, medical bills, hotel stays, or legal fees out of pocket. 
Alexandra Arcand writes and researches for the insurance comparison site, Clearsurance.com. She is an insurance expert who enjoys helping others find policies that fit their needs.
