Recent studies indicate most renters are taking a major risk when it comes to being sued or losing their personal property.
Cost was cited as a main reason stopping people from getting coverage: the survey found that many people assume a plan is expensive. Sixty percent of respondents believe the annual cost was $250 or more and 21% said they thought it cost $1,000 a year or more. Depending on the area where you live premiums will typically start at about $17 monthly or about $200 per year. Not much when you consider what is at risk.
The most common reasons for not carrying insurance were "my apartment or rental home has good security" (57%), "renters insurance is too expensive" (52%) and "my landlord has insurance" (48%).
Renters or tenants insurance typically covers a wide range of risks from bursting pipes, to smoke and fire damage, to vandalism, lawsuits from bodily injury or property damage and even living expenses such as a hotel room, while you home cannot be lived in because of a claim.
Most landlords have a clause in their lease that says tenants must have renters insurance but they generally do not enforce it.
Injure someone while riding your bike? Drop something off your balcony and it lands on a car? Just a few more examples of the risks you face as a tenant and which could be handed over to an insurance company for a modest monthly cost.
Insurance does not cost...it saves!