You know you need auto insurance, but if you’re just renting an apartment, do you really need to bother getting renters insurance? Even if you don’t think you have a lot of valuable things, the answer to the preceding question is absolutely yes, and here’s 6 reasons why millennials need to purchase renters insurance:

1. Replacement

You can’t count on your landlord’s insurance to cover your possessions after a disaster has struck. If your apartment complex burns down, the building owner’s insurance coverage will help him or her rebuild, but that insurance will not help to replace anything like your furniture and valuable possessions. Your clothes, your electronic equipment and even your beds and dressers are not generally covered by anything other than your renters insurance policy.

2. Liability

OK, you swear you own nothing of much value. All of your furniture was donated to you and has next-to-no resale value, and if your apartment in Springfield, Missouri is demolished by a tornado, you know how to replace your stuff with a fresh set of donated goods. You still would benefit from a renters insurance policy. If someone injures themselves while at your apartment, you could be liable for their injury costs. If the landlord’s repair person slips on an unseen puddle of water at your residence, that could be your fault. The repair person could sue you personally and you could owe significant money.

3. Theft

If someone breaks into your place and takes everything, your renters insurance can be a big help in replacing your items. You do need to make sure that your insurance covers items like jewelry and musical instruments, however. In some cases, you will have to notify your insurance company and “schedule” certain items and even pay an extra premium for some others. Some expensive items require an insurance rider or endorsement. Regardless, it’s well worth the time and effort to do so.

4. Off-Premise

Did you know that if your laptop is stolen from the backseat of your car, your auto insurance policy won’t cover the cost of replacing it? A comprehensive car insurance policy does cover theft, but only items affixed to your vehicle such as a car stereo or rims. This off-premise theft actually falls under homeowners or renters insurance. If you have personal belongings stolen from your car, such as a laptop, sporting equipment or jewelry, your renters insurance may cover it. This is a great policy provision, and it’s one that you should ask your agent about.

5. You have more stuff than you may think

Before searching for the best renters insurance, take a video of all of your things, and then take some time to add up what the cost of replacing everything would be. You’ll likely be amazed at how quickly your possessions will add up to $20,000 or more. Renters insurance policies cost less than $200 annually on average, and a couple hundred bucks to cover $20,000 or even $50,000 in possessions is a great deal.

6. It might be your turn

Some millennials may have ve never been in an accident, never been the victim of a crime, or never lived through a major destructive weather event, but that unfortunately doesn’t mean bad things can’t happen to you in the future. Insurance dollars shouldn’t be looked at like thrown away money if you never have a claim. Instead, renters insurance is a security blanket that can help you sleep better knowing that if the unthinkable happens, you’ll be able to recover.

No matter how old you are, you need the peace of mind that renters insurance will bring you. You might not have be a homebuyer with major issues like trying to find the best HVAC contractor to fix major problems at your home, but this insurance is a relatively small investment with a big return if something unfortunately does happen to you.

Interested in seeing the highest-rated renters insurance companies in your state, according to consumers? Check out our best renters insurance company rankings list.

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