Is renters insurance expensive? Does it matter? While it’s not expensive, the cost of renters insurance pales in comparison to the cost of replacing your stuff. Only forty-four percent of American tenants have renters insurance. There are some misconceptions out there, including the cost, of course.
Those misconceptions hit certain populations the hardest. One of those populations is college students and graduate students, of which Illinois has many. By way of example, Carbondale, IL Renters Insurance is not required by many private landlords.
But the students and grad students at Southern Illinois University have incurred a great deal of debt to get to where they are and can ill afford to take on more in the event of a loss. Is renters insurance expensive if it’s part of the living expenses for which you’re already taking loans?
Is Renters Insurance Expensive? Less Expensive Than A Liability Claim Impacting Your Future Earnings!
If you’re a student or a grad student, perhaps in medicine or law, you’ve got a long lifetime of high earning potential ahead of you. Right now, there’s no one but you and perhaps your family who has any expectations of getting a piece of that income. You’re working hard for it, and you’ll deserve the money you make. You should be able to keep it all.
But all it takes is one liability claim to take those future earnings away from you. Something as simple as bumping into someone on the street could result in an injury that could bankrupt you or worse. People will sue over absolutely anything, and often win.
If you’re a student, you probably don’t have a great deal of money now. Is renters insurance expensive? Renters insurance is far less expensive than paying a lawyer to defend you against a lawsuit, especially one that’s frivolous or resulting from injuries that just aren’t all that serious.
One of the advantages of having renters insurance, and one of the best reasons to pay for the coverage, is that the insurance company will defend you against a claim or suit for a loss that the policy would cover. That means you won’t have to pay for the lawyer, and you won’t have to pay for the loss up to the policy limits. That saves you money, stress, and access to the future earnings that a suit like that could take from you.
But you’re thinking that a liability claim isn’t likely. You’re still not sure that renters insurance isn’t expensive.
Think of it this way: According to the National Fire Protection Association,
- 357,000 home structure fires per year,
- causing 2,470 civilian fire deaths and 12,890 civilian fire injuries,
- along with $6.9 billion in direct property damage.
If you’re responsible for one of those fires, whether because of a candle, an overloaded power strip, a cooking fire, or an exploding cell phone, you’re also responsible for the injuries, deaths, and property damage that will result from it. You’ll need the defense coverage badly, and you’ll also need coverage for the amount of the loss.
Often, these claims are settled at the policy limits, and the policy limits divided between the people who are owed money, because they know that the person responsible just doesn’t have any money. However, when you have future earnings available, it’s wise to add more liability coverage.
Most people who have suffered a loss will gladly take some money today from your insurance policy as opposed to all of the money they’re owed eventually, once you start earning, maybe, if they can collect it from you. Increasing your liability coverage is a great way to make that possible, but is renters insurance expensive if you increase the liability?
Not at all. Increasing the liability coverage on your renters insurance might add twenty dollars a year to the average policy. It’s just not a significant expense to increase coverage, once you have any coverage at all.
Is Renters Insurance Expensive? Not As Expensive As Your Stuff!
But enough about a liability claim that seems like it will never happen to you. Let’s circle back to that 357,000 home structure fires per year. Consider that a “home structure fire” includes dwellings with multiple units. Whether you live in a duplex or a building with twenty units, a fire in that building could still be classed as one fire among those 357,000 counted by the NFPA every year.
If half of those fires are in apartments with four units, which is a very conservative estimate, that would mean over seven hundred thousand apartment units suffering a fire loss. Even if the building and your apartment aren’t a total loss, the smoke damage will mean that your property is a total loss. That’s not even considering the water damage from putting out the fire.
What is the cost of replacing everything you own? Most Americans would have difficulty coming up with a few hundred dollars for an emergency. What is the cost of replacing textbooks, supplements, computers, and programs necessary for classes? What’s the cost of replacing the bare minimum of clothes you need just to get to class? Add to that everything else you own, and you’re into the tens of thousands of dollars range.
Seven hundred thousand apartment dwellers lose this game of chance every year. Is renters insurance expensive? Not when compared to the odds of having a fire loss without Carbondale Renters Insurance. Renters insurance is incredibly affordable, in that context!
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
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