Walk into my apartment, and you’ll notice something: There’s hardly anything in it. It’s sparse, austere, and minimalistic; most of all, purposeful. A table, chairs, my bed – not many extras.
I’ve rented for years now, and I’m not sure I ever want to purchase a house. In a previously written article for PTMoney.com, I cataloged the many reasons why I hesitate to buy. Home insurance may never be applicable to me, but what about renter’s insurance?
Multi-Line Discounts
Every time I call Geico to ask for discounts or check my car insurance premiums, a representative suggests a particular “discount” for also having renter’s insurance. Invariably, I ask what that costs. Would having a multi-line discount make my overall bill cheaper? No.
Unfortunately, this multi-line “discount” is simply a marketing ploy to attract non-critical consumers. Do yourself a favor and ignore these enticements.
Fear Factor
…what if your apartment gets burglarized? Or, worse yet, suffers smoke damage in a fire? Some renters may think that everything they have inside their apartments is insured under the landlord’s policy, but that only covers the building itself. (Source)
Renter’s insurance is often motivated by fear of the unknown. A fire, flood, burglar, or any other risk may enter your apartment and destroy what’s rightfully yours. This destruction is not covered by landlords.
If you have a wealth of materials in your house, renter’s insurance may be for you. It’s a hedge against negative events. The insurance company lets you pay a small fraction of the total worth on the actuarial assumption that you won’t need the money.
Minimalism
There’s a way to avoid renter’s insurance, feel safe, and live a comfortable life. The secret is minimalism. This term represents a movement towards the essential; basically, eschewing all that’s superfluous for what really matters.
Minimalism can be a powerful tool to feeling free from worry. If there’s nothing to burn or steal, why do you need renter’s insurance? When I go on vacation or leave my home, I’m comforted by my bare apartment. What could anybody want? What’s the worst that could happen?
Yes, my table, chairs, pictures, and electronics could morph into charcoal and dust if a fire occurred. But I place no value in these inexpensive things that are easily replaceable. They’re not worth a monthly hedge that drains my budget even further.
And if you choose to plaster the walls with pictures of loved ones and heirlooms, there’s a priceless nature to these things. Geico doesn’t care about priceless – nor could they actually replace them.
What Should You Do?
When it comes time to consider renter’s insurance, take a critical eye to this apparent money saver. Potentially, it may drain your budget, while making you feel safe.
The decision is yours.
Just know that safety doesn’t always need to be purchased. Sometimes, it takes a philosophical change, instead. That’s where minimalism can help.
It sure was cheap peace of mind, looking back on our apartment days.
No waste,
No doubt that renter’s insurance can give you peace of mind if you own and hold expensive items. Likewise, if you travel frequently, knowing that you’re protected can help.
I guess I circumvent all of this by owning less. It costs less to do so and I end up feeling just fine leaving my apartment. 🙂
Thanks for commenting!
-S.
http://www.thestar.com/life/homes/2011/01/25/why_tenants_need_household_insurance.html
I agree with the minimalism philosophy; my personal possessions are basically covered the minimal amount on my renter’s insurance, because I don’t have a lot of them and I know they can be replaced cheaply. However, you haven’t mentioned personal liability in your article — if you accidentally injure someone else or they get injured at your house, renter’s insurance covers your liability should they sue you. If there is an accident in your dwelling like a kitchen fire or plumbing failure/flooding, which could be of a crippling cost to you as an individual, you renter’s insurance will take care of it. I think it’s a small investment for a lot of gain in a worst case scenario.
Cassie,
Thanks for your comment! I appreciate the perspective.
You’re right that in the case of accidental injury within your domicile, you may be liable. Now, I’d hope that anybody that I accepted into my house wouldn’t sue me in some accident. Eek! That would be sad.
When it comes to flooding due to some plumbing issue, I believe this is covered by the landlord. I may be wrong, and you should correct me if you think I am. But, that sounds like mechanical failure, rather than user error. If the latter is the case, yes, better have renter’s insurance.
Thanks again for your thoughts!
-S.
I would think that if someone had an accident in your apartment, the landlord would be liable for that too. Anyway, I never had renters insurance. Same reason. Minimalist with nothing valuable enough to squander the premiums for. You’re right, big time peace of mind. Gread blog, as usual! 🙂
Depending on where you live, you may be required to have renter’s insurance. The past 2 complexes that we lived at, we had to furnish evidence of insurance to be in compliance with our lease agreement. You make a good point though – having renter’s insurance should really come down to if you have anything worth insuring or not!
I have nothing worth stealing in my apartment anyways but I always got renters insurance because I like having people over and I wouldn’t want to be liable is anyone got hurt. And if someone did get hurt I would want them to be taken care of. I’m not really worried about getting sued because I don’t have any money or valuables for someone to win in a law suit.