Just because you don’t own your home doesn’t mean that you don’t need insurance. Renter’s insurance is required by many apartment complexes, but if you are going to pay for it, you should understand what it is that you are paying for. You may be required to have renters insurance, but that doesn’t mean you can’t maximize the value.
Package Discounts: Most insurance companies give the same discount for packaging renters and auto insurance as they do for packaging home and auto insurance. This discount can be as high as 25 percent, and often the discount on the auto policy essentially pays for the renter’s policy.
Liability Coverage: The reason that apartment complexes want you to buy a renters policy is to protect them – so that if you decide to take up chemistry and blow the place up the apartment complex can make a claim on your policy and get paid. However, that liability coverage protects you as well. If someone gets hurt at your party, if you BBQ your neighbors into oblivion, or if you just talk garbage about your neighbor Becky, the liability portion of your policy covers you.
Property coverage: We all have stuff, it’s the American way. If you are a minimalist, this doesn’t apply to you, but if you are a typical person, it wouldn’t hurt to have your property covered. Apartments get broken into all of the time, they burn down at Christmastime, and are even flooded by idiot neighbors. Protect your stuff. I promise, you have more to protect than you think.
Extended coverage: So while you are living in the apartment complex, and working your way to home ownership, you are probably working and playing hard. Who hasn’t forgotten their laptop in their car after a raucous night of spreadsheeting and woken up to find it gone? If that’s happened to you, then you know it’s not covered by your auto policy. It is, however, covered by your renter’s policy.