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You might have heard of the term “renters insurance”, but here’s my take on it. Renters insurance or tenant insurance exists to protect you and your stuff against incidents that are not covered by the landlord’s insurance plan.
I visited Denver on my book tour for Financial Freedom and was blown away by how much the downtown area is changing.
I’ve been to Denver a few times over the past 10 years, but this time it was crazy how fast it’s growing. There were tons of cool microbreweries and restaurants popping up everywhere.
But unfortunately, as the city continues to grow, this inevitably means an increased number of renters who may not fully understand the importance of renters insurance.
Since the future is unpredictable, I prefer having renters insurance to help protect my stuff. Purchasing renters insurance in Denver is a great way to minimize the impact of these rare, but expensive uncovered incidents.
Benefits of Renters Insurance in Denver
One common misconception is that the landlord’s insurance will cover everything and anything that happens to your apartment or condo. But typically, your landlord’s insurance does not cover things like personal property, liability protection (legal and medical coverage in case of a liability-related injury or property damage) or an unlivable home.
This is where renters insurance can help. The crazy thing is how cheap renters insurance can be. Many people claim that they don’t have renters insurance solely due to the cost.
I’ve been paying only $16 per month for insurance coverage on my 3BR apartment. That’s the same price as a few coffees!
And for such a small monthly contribution, you’ll benefit from several different types of insurance coverage. I’ve described my understanding of them here but for more details and an in-depth explanation of each type check out the link below.
Lemonade Price: Renters Insurance starting at $5/mo Lemonade Insurance offers a new approach to renters, condo and home insurance. They even give back up to 40% of unclaimed money to the nonprofit of your choice.
Personal Property Protection
Based on my experience, this type of insurance coverage protects personal items from incidents such as fires, theft, water damage or other potentially destructive events.
For example, I had a friend whose neighbor’s pipe burst during the winter and ruined expensive electronic equipment. If you don’t have renters’ insurance for something like this, you could be in deep trouble. This type of event is not typically covered by the landlord.
However, if you had some form of renters’ insurance on your electronics (which might only cost a couple of bucks per month), you could get reimbursed for the damaged items, like my friend.
If someone is injured in your home and decides to file a lawsuit, will you be covered? Liability protection can help with that and protect you financially.
So, if a person were to sue you and you didn’t have renter’s insurance, you could have to pay the lawsuit out of pocket.
Instead, a small monthly renters’ insurance payment could have provided protection from the lawsuit (and potentially saved you money and headache).
And then there are the medical bills if you’re found liable…
I don’t know about you, but I definitely wouldn’t want to pay that bill out of pocket. That’s why for literally $16 per month, I can let my renters’ insurance bear that burden. It’s better to be safe than sorry!
If your house is temporarily unlivable due to a hazardous event, this type of coverage will help pay for your relocation or temporary housing until your primary residence is deemed suitable for living again.
In the case where a house fire makes your primary residence unlivable, renters’ insurance is extremely helpful to make sure you don’t end up living out on the streets or shelling out thousands of dollars for relocation costs.
I actually had a friend whose apartment was deemed unlivable for six months and from what he told me, his renters insurance paid for him to live in a hotel. So for him, it was totally worth it to have renters insurance!
Although you might think it’s probably unlikely that your home will be made unlivable due to some unforeseen event, you never know and it could help to have renters insurance just in case.
Check Out Renters Insurance in Denver
Now that you understand how important renters insurance is, it’s time to put the excuses aside and consider signing up. A new renters insurance company that has recently popped up is called Toggle – a Farmers company.
The cool thing about the platform is that you can literally customize a renters insurance plan that’s specific to you. Here’s our full Toggle Review.
According to the Toggle site, you can get their renters insurance coverage starting at $5/month, and go from there. It’s literally never been easier to sign up in a matter of minutes with a customizable insurance package.
In my opinion, getting renters insurance is a no-brainer. Even if you think there’s a 99.9% chance you’ll never use it, I think it’s worth having for those expensive 0.1% moments.
I don’t know what my friend would have done if he didn’t have renters insurance when his apartment caught fire. Luckily, he was ready – and you can be too.
Once you decide whether renters insurance is right for you, take the time to really think about your specific situation and create the perfect coverage plan. Your future self will thank you.