Do You Need Renter's Insurance for Your First Apartment?

When you rent an apartment for the first time, the last thing that you’re thinking of is insurance! You might want to decorate your apartment, you’re unpacking your belongings, and you’re settling into your new home so do you really need to have renter’s insurance, and what is it actually about?

Let’s look at renter’s insurance for first-time apartments and whether it’s really worth it?

What is Renter’s Insurance?

You may be familiar with insurance as a form of financial protection in the event of an accident, an act of nature, damage, or loss. Well, insurance for renters is pretty much that but offers financial protection for the things inside the apartment. Your furniture, electronics, clothing, and even jewelry can be covered with an insurance policy. It means that you can claim from your insurer if a flood happens in your apartment and damages your phone, laptop, and clothing.

It will only provide cover for the damages or losses that are suffered due to factors outside of your control. A plumbing fault, storm damage, or someone breaking into the apartment can all be considered for cover and compensation.

Why You Need Cover as a First Time Renter?

When you rent for the first time, you’re committing to a lease for the next year. This means that your finances have to be in order to pay your rent on time and maintain the lease. If something should happen that were to destroy the furniture and the electronics in the apartment, then this out-of-pocket expense could be a major financial blow.

When you have renters insurance, you dedicate a few dollars a month to an insurance policy. The policy will provide a breakdown of what is covered and what is excluded. It provides peace of mind that your belongings will be restored or replaced without most of the cost has to come out of your pocket.

Renting for the first time leaves much to be desired. You’re not always clued up on all the terms and conditions but one thing that you need is to ensure that the rent is paid every month, on time. Suffering a personal setback such as a flood or fire in the apartment can be detrimental to your finances. Landlords are also not responsible for the contents inside your apartment. This means that your clothing and personal belongings are not covered by the landlord.

Where to Find Insurance for Renters

Before you commit to a single policy, take the time to perform some much-needed research. Contact at least 3 companies for quotes, compare the type of cover and the costs offered. Base your decision on which provides the best value rather than the cheapest quote alone.

When you protect yourself and your pocket, you can prevent the unpleasant experience of stretching your finances or paying for damaged or lost goods from your apartment that you haven't budgeted for.

Psychology graduate and content creator