One of the objections to renters insurance that we often hear is along the lines of,
Well, I don’t have that much personal property, if there’s a loss I’ll just pay to buy new stuff out of my savings. I’m saving that fifteen dollars a month that renters insurance would cost me, aren’t I awesomely frugal? I can go buy a pizza with that money!
In other words, why buy renters insurance when you could just save that money and put it in a savings account to cover the losses you might suffer? Interesting, but wrong. Let’s look at why.