By the time most students graduate from college, they feel the only thing they’ve accumulated is a whole lot of debt. That, along with sluggish labor and housing markets (the Great Recession did end, didn’t it?), has prompted many college graduates to steer away from buying a home right away, opting to rent instead.
According to a USA Today analysis of Census Bureau data, from 2006 through 2011, 25- to 34-year-olds experienced the largest decline in homeownership compared with any other age group. Can you blame these young adults for being wary of jumping into a large mortgage payment? Buying a home is one of the biggest decisions and investments most people will make in their lifetime. But just because you choose to rent your home rather than buy it doesn’t mean you don’t need insurance!
Why you might ask? Well for starters did you know that your landlord’s insurance policy generally only covers the building where you live, not your personal belongings? Although you may not feel like you have a lot of valuable possessions, most people’s belongings are worth more than they think. How much would it cost if you had to replace all your personal belongings at one time? No matter how broke you might be, it’s likely you own some clothing, electronic devices, and furniture.
Did you also know that your landlord’s insurance policy does NOT cover your personal liability if someone is injured or another person’s property is damaged while in your residence? You could be held responsible for those injuries or damages, and without renters insurance coverage, you’ll pay for them out of your own pocket.
What if your rental became unlivable due to a fire or some other disaster? Where would you live and how would you pay for it? Most renters policies provide additional living expenses to cover situations just like this.
What if you’re still in college but renting a place to live? You may mistakenly believe that your personal property is covered by your parent’s homeowner’s policy. However, if your rental is your permanent address, generally there is no coverage under your parent’s homeowners policy.
Lots of scenarios, but fortunately one solution! And the best thing about renters insurance? It’s very affordable, even for those of you who don’t think you can take on one more expense. Talk to an independent insurance agent today about how you can benefit from a renters policy!