Many renters don't purchase renters insurance because they think they don't need it or they think it's too expensive. However, that's not true. Clearsurance uncovers 5 renters insurance myths and provides you with the facts.

Believing the myths below can lead renters to skip purchasing valuable renter’s insurance. However, not purchasing renters insurance can leave you unprotected in the event of an accident, natural disaster, or burglary.

Here are 5 renters insurance myths busted and the facts.

Myths covered in this blog:

• Myth 1: Your landlord’s insurance will cover you.
• Myth 2: Your personal belongings aren't worth insuring.
• Myth 3: Renter’s insurance is too expensive.
• Myth 4: One renter’s policy covers everyone living in the apartment.
• Myth 5: My landlord is required to pay for a hotel room if my place is uninhabitable.

Myth 1: Your landlord’s insurance will cover you.

One of the most commonly believed myths about renter’s insurance is that your landlord’s insurance will cover your belongings if they’re damaged or destroyed. It’s also risky to believe because it can leave you uninsured if you don’t purchase renters insurance. This myth seems believable, because, of course, your landlord does have insurance.

Fact: Your landlord’s insurance covers the structure of the building you are renting.

Your landlord’s insurance is much different from your renters insurance. Your landlord’s insurance covers the building, which is what the landlord owns and is responsible for, but it doesn’t cover your personal belongings contained within the building.

For example, if lightning strikes the building and sets fire to your apartment, your landlord’s insurance will help cover the cost to repair or replace the building and whatever the landlord owns in your apartment, such as kitchen appliances.

It won’t cover anything that you brought into the building when you moved in, including your furniture, electronics, etc. That’s what renters insurance is for. You need renters insurance to receive coverage for your personal property as well as liability coverage.

Clearsurance outlines the difference between landlord insurance and renters insurance in the blog, Landlord insurance vs. renters insurance: Who’s responsible for insuring what?

This can be a very expensive lesson to learn, because most people don’t realize how much it would cost to replace everything they’ve lost. You can check out Allstate's company profile to learn more about Allstate's insurance offerings.

Myth 2: Your personal belongings aren’t worth insuring.

Many people fall into the trap of thinking that their personal belongings aren’t worth much, so they figure that they don’t need renters insurance. Renters insurance helps you financially recover from an unexpected loss in your apartment. If all of your personal items in your apartment were destroyed in a peril, would you be able to replace them all out of pocket?

Fact: The value of your items can add up and renters insurance can help you replace your items in an unexpected loss.

Even if your apartment is full of family cast-offs and garage sale finds, you shouldn’t think of your possessions as not worth insuring. If you lost everything in a fire and didn’t have renter’s insurance, the cost of replacing all of those items would have to come from out of your own pocket.

While we tend to focus first on the big things, such as furniture or computers or devices, it’s replacing the many everyday items we all own that could really start to add up.

Getting the right amount of renter’s insurance is both a bit tricky and absolutely essential. Lemonade (Lemonade company profile) offers customizable renters insurance so you can purchase the right amount of coverage for you and your personal belongings.

Myth 3: Renter’s insurance is too expensive.

This myth may be based on assumptions from experience with auto insurance costs. If you’ve never purchased a renter’s insurance policy before due to the expected high cost, then you have fallen for this myth.

Fact: Renters insurance costs an average of $15 a month.

According to the Insurance Information Institute, renters insurance in the United States costs an average of $180 a year, which equals $15 per month. That’s much more affordable than car insurance or homeowners insurance, which can cost 10 times that.

Clearsurance’s blog, 5 Reasons renters insurance is worth $15 a month, can help you understand why renters insurance is so important and affordable for the coverage you receive from it.

Liberty Mutual (Liberty Mutual company profile) says you can get renters insurance for less than $5 a month and less than $1 a day.

Myth 4: One renter’s policy covers everyone living in the apartment.

A common myth is that a renters insurance policy covers everyone who lives in your apartment. This isn’t true, and actually, all roommates may need their own renters insurance policy. Unlike a homeowners policy, where everyone who lives under one roof is covered, renter’s insurance is different.

Fact: A renter’s insurance policy is tied to the person named on the policy, not everyone who lives there.

Your renters insurance policy only covers your personal belongings and it won’t cover your roommate. Each roommate should have an individual policy that covers their own possessions.

There is one exception to this. In some cases, if you live with your spouse, you can both have one renters insurance policy.

If you have a roommate who isn’t your spouse, one renter’s policy likely won’t cover everyone living in the apartment. Renter’s insurance has many options and it’s important to understand what is available to you. Check out Clearsurance's renters insurance guide to see what renters insurance covers.

Myth 5: My landlord is required to pay for a hotel room if my place cannot be lived in.

If your apartment cannot be lived in after a loss, such as a fire or an incident of theft and vandalism, you may need to arrange for another place to live. If you need to stay in a hotel, this may cost you (not your landlord) extra money. Don’t assume that if you can no longer stay in your rental that your landlord will be required to pay for your hotel room.

Fact: Your renters insurance policy may cover your additional living expenses.

Many states require landlords to compensate renters in some way if the building becomes uninhabitable. However, what they are required to do by law can vary considerably from state to state. It’s also possible that the financial compensation required by the landlord won’t be enough to cover the losses.

For example, if something happens to your rental unit that requires extensive repairs and you can’t live there while construction is going on, your landlord might only be required to provide a prorated portion of your rent as compensation.

That amount isn’t likely to be sufficient to cover the cost of a hotel room for weeks at a time.

Many renters insurance policies include loss of use coverage which is also called additional living expenses (ALE) coverage. This coverage will help to pay for your temporary quarters while your rental unit is repaired.

Have you believed any of these renters insurance myths? Let us know in the comments section below. If you’re ready to shop for renters insurance, visit Clearsurance’s best and cheapest renters insurance rankings page to help you find the best company for you at the cheapest rate.

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