Is Renters Insurance Worth It?

By Brittany Loeffler on September 25, 2018

It’s recommended to get a renters insurance policy if you are living off campus in college. While this extra monthly bill may add some stress to your wallet on top of tuition and other student expenses, it’s essential to have. Some landlords even require tenants to take out a renters insurance policy.

You may have the mindset that you don’t need renters insurance because you take care of your belongings, always lock the doors, and put out candles before leaving the house. The reality, though, is that a disaster can happen at any time. So, why not have renters insurance to cover the unexpected costs?

renters insurance

via Pixabay

What Is Renters Insurance?

Renters insurance protects you and your personal belongings. It is different than having homeowners insurance because you do not own the home and it covers different things. Renters insurance only covers what belongs to you as a tenant and does not cover any damage done to the actual building you live in; your landlord’s homeowners insurance does. While your landlord most likely has homeowners insurance, it does not cover the tenants living in the house.

renters insurance

via Pixabay

What Does Renters Insurance Cover?

We already went over how renters insurance does not cover the physical building you are living in. Instead, it covers things that only belong to you. Renters insurance covers mainly three things: personal belongings, liability, and unexpected living expenses.

Personal Belongings

When you sign up for a renters insurance policy, you will document all of your belongings and place a total value for your belongings. This is to make sure that you are reimbursed if items are stolen from your apartment or if a fire in the building damages your belongings.

A perk of having renters insurance is that your personal belongings are covered even if they aren’t in your apartment. If you have personal items in your car or in a storage facility, they are covered under your insurance policy. If they are stolen, you can make a claim and get reimbursed.


Renters insurance also covers liability. This means that if someone were to create a lawsuit and try to sue you, your insurance company will pay any damages. An example of this would be if you have a dog and it bites a guest in your apartment. If the guest is badly injured and decides to sue you for medical bills and anything else, the money won’t come out of your pocket but will come from the insurance company up to a certain amount. These situations can get messy, so it’s nice to have renters insurance there to back you up.

Unexpected Living Expenses

Nobody wants to think about what would happen if they lost their home from a fire or weather-related damage. In the event that your apartment is so damaged that it’s uninhabitable, your renters insurance will cover any living expenses that come with your being displaced. This includes hotel rooms, food, and any items that you lost in the house.

When you think about it, staying in hotels until you find a new home can really add up. As a college student, you probably couldn’t afford staying in a hotel or Airbnb for the long term.

renters insurance

via Pixabay

Shop for the Right Policy

When you decide it’s time to get renters insurance, spend some time shopping around for different policies. The monthly premium will depend on the value of your items, your preferred deductible, and how much coverage you would like. Different insurance companies have different rates, so make sure to do your homework. If you own a car and pay your car insurance, you may want to look into a bundle package where you can receive a discount. Don’t forget to ask about student discounts too!

Before signing up for a renters insurance policy, read it over carefully and have a full understanding of what you are signing up for. Some policies cover certain things while others don’t cover something entirely. This is the time to decide what policy is best for your lifestyle and living situation.

Is Renters Insurance Worth It?

In the long run, yes renters insurance is definitely worth it. As a college student, you may not want to take on yet another monthly bill on top of rent, utilities, tuition, and other living expenses. However, with just a few dollars a month, you can save yourself thousands of dollars in the event of a lawsuit, house fire, or robbery. You can’t afford to take a chance on going into debt or losing everything you own without the ability to replace it.

Next time you think about going out to dinner, stay in and make a home-cooked meal for yourself. Then take the money you would have spent at dinner and use it to pay your monthly renters insurance bill. It’s worth it.

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