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My Stuff Isn't Worth Much, Do I Need to Protect it?

One of the biggest arguments that renters have against getting rental insurance, or their most popular explanations for not being covered, is their perception that what they own is not really worth the expense of insurance protection. They say that they don't own all that much stuff, and that what they do own is not worth all that much money anyway, so there is no reason to spend the money on insurance. Well, there are a few problems with this line of reasoning. First of all, making the supposition that your belongings are not worth much money assumes that you have an accurate understanding of their value or replacement cost.

Coverage Choices Based on Assumptions

Many renters, especially younger ones who haven't lived out on their own for very long, assume that the sum of their personal possessions does not add up to all that much. However, more often than not, renters are surprised to find that they have underestimated the replacement value of their belongings. Even if your stuff is not all that valuable in individual pieces, it more than likely would cost a pretty penny to replace it all in one fell swoop. Even if the insurance you chose to purchase was only based on actual cash value and not on replacement cost coverage, you still would be much better off than you would with no coverage at all if you lost everything in a catastrophic claim.

Another problem with the logic of this argument is the inherent assumption going along with it that renters insurance is mostly just a way to protect your property. Although personal property protection is an important component of every renters policy, it is hardly the only component. Of equal and sometimes greater importance is the personal or family liability protection you can get in a renters plan. This part of the policy does not protect your things from the ravages of fire or from acts of vandalism. Instead, it protects you from having to personally deal with the financial cost of civil liability judgments that may come about as a result of events taking place at your home.

Renters Insurance Protects More than Property

One common type of event is an accidental injury suffered by a friend or acquaintance at your rental dwelling. The cost of medical care, plus pain and suffering, loss of income and who knows what else, may be your personal responsibility if you are not covered with a proper renters plan. Add to this the provisions for medical payments coverage and loss of use, and you can clearly see that renters insurance is about much more than just protecting your clothes and furniture against the threat of fire in your condo. Even someone who owns next to nothing should still get renters coverage. The reduced need for personal property coverage will make the payment even lower, and the liability protection will be just as valuable as ever.

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