While renter’s insurance is touted as a necessity by many financial experts, it isn’t something every renter decides to purchase. In some cases, it’s viewed as optional, particularly if you have a tight budget and the landlord doesn’t require it. However, without renter’s insurance, you leave yourself vulnerable. If you’re wondering why renter’s insurance is worth it, here’s my story.
How Renter’s Insurance Saved Me from Financial Hardship
When I got my first apartment, I was incredibly excited. It was a major step forward in my life, allowing me to assert my independence and build something that was entirely my own.
I was fortunate in being financially oriented. I understood that renter’s insurance was critical for stability, giving me some level of protection against the unexpected. And one day, the unexpected happened: a flood.
As a result of the flood, my furnishings and clothing became unsafe to use or incredibly damaged. In the end, it was all going to need replacing, something that would typically cost hundreds – if not thousands – of dollars to handle.
Thankfully, I had renter’s insurance. Since the event was covered, I got financial assistance from my insurer. That gave me critical funds to replace everything that I couldn’t use after the flood, saving me from having to make purchases out of pocket.
What Happened to My Neighbors Who Didn’t Have Renter’s Insurance
While I was fortunate enough to have renter’s insurance at the time of the flood, others in my building didn’t. Many of them experienced similar damage to mine, leaving them without furnishings or clothing. However, there wasn’t a financial safety net in place to assist them with rebuilding their lives. Instead, that was all going to come out of their pockets.
Since many neighbors couldn’t replace everything at the same time, that meant living without some items that most would deem essential. That makes a tragic event even harder to move past, as the reminder remains until you finish rebuilding. Since gathering the money takes time, that means struggling for months or even years, something that most people would likely want to avoid.
Why Renter’s Insurance Is Worth It
Figuring out how to come up with hundreds or thousands of dollars immediately after an emergency isn’t easy. For some households, it may even be impossible. That’s why renter’s insurance is essential. It’s a safeguard against financial hardship, giving you access to funds when you need it most.
Remember, your landlord’s insurance doesn’t cover your belongings in nearly all cases. Instead, that only handles the building, more often than not. With renter’s insurance, you get critical coverage, making it easier to rebuild your life after the unexpected, just like I had to some years ago.
Has renter’s insurance ever saved you from financial hardship? If you skip renter’s insurance, is there a reason you’ve decided to forgo this kind of protection? Share your thoughts in the comments below.
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.