Renters insurance is a waste of money and time. I have rented for 30 years. That is right 30 years of paying rent, I know what I am talking about. I can prove that insurance is not worth it.
Insurance is about ownership, not a monetary probability. You are made whole after a catastrophic loss that would destroy your life. If you own a car and home, which are large investments then these are things which you must insurance, but if you rent a place chances are the things you have in your flat are not worth insuring. Why? They would not set you back materially in your life. The only thing worth anything is my laptop, no the unit but the data one it.
- The premiums after a couple of years will be let us say $800, with this money you could have gone to IKEA and bought new furniture.
If you have a large diamond ring lets say, you take a separate policy out on that. A new laptop at best buy will cost only $300 brand new. So, in my opinion, its a total waste of money to insurance your pittance as a renter.
- I have rented for countless years and never had a problem. Further, if someone really wants to steal my TV, well good luck. I will leave it at that.
You overvalue your own things in your apartment
There is a tendency to value your own things more than they are worth in the market place. On e-bay, you can buy replacements for what you have lost at a fraction of the price from the store. Who knows you might even find your own hot stolen item there. I am just joking. Although one time I was at a market here where I live and I thought I saw my friend’s cell phone for sale.
The second you carry an object out of a store it is nothing more than a depreciating asset on an accelerated curve.
If you are renter chances are you are in your 20s and do not have a lot of valuable stuff anyway.
Insurance company payouts
Receiving payment from insurance companies. I have heard receiving payment from the insurance company’s on housing insurance is a hassle and sometimes even profitable.
The opportunity cost of investing vs insurance
If you rent a place your money is better to spend saving for a house rather than letting service companies, like and insurance company take your disposable income away.
Life is risk
What about better, safe than sorry. My reply is there is always a risk in life. You can take out a special insurance policy every time you fly in a plane. I think insurance companies play on people’s fears. I do not like it. I have worked in insurance for many years and they will have you buy every type of insurance there is.
It is a waste of your time and money and psychologically you are not free, but governed by your fears. Insurance companies are greedy.
Buy apartment insurance if there really is a need. A real need. But not for every little thing. This is why I believe tenants insurance is a waste of time and mental energy.
How much does renter’s insurance cost?
I think the average person will pay a couple of hundred dollars a year at most. Not a lot, but not little either. You could invest this couple hundred in your 401k and you would be better off.
What if your landlord requires you to buy insurance.
My advice is to find a place where it is not required.
What if you live in a high crime area?
Move or do not have valuable things. I love in Poland and everyone has three locks on their doors and everything here is solid, but no one would ever buy renters insurance.
The bottom line on insurance for renters
In my opinion, you do not need renters insurance. If you want to browse around and compare costs and benefit, it does not hurt. If you disagree let me know and know why you think you need this in your flat or apartment.