Author Topic: Self-Insure or Buy Renter's Insurance?  (Read 803 times)

jfer_rose

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Self-Insure or Buy Renter's Insurance?
« on: December 30, 2016, 10:45:42 AM »
Since I sold my home and moved to a new city last year, I have been renting. My landlord doesn't require renter's insurance. Which makes more sense to you: buying renter's insurance, or self-insuring? In case it matters, my net worth is approaching $400K.

plog

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Re: Self-Insure or Buy Renter's Insurance?
« Reply #1 on: December 30, 2016, 10:51:55 AM »
Sounds like a simple math problem.  Fire destroys everything you own.  How much would it cost to obtain the things to make your live comfortable again (A)?  Divide that by the premiums to determine how long it would take you to break even on forgoing them (B).    Then ask yourself:

1.  Is A a disproportionate amount of my net worth?  Am I comfortable losing that much money?

2.  Is B a relatively short time frame? 
« Last Edit: December 30, 2016, 10:54:13 AM by plog »

Retire-Canada

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Re: Self-Insure or Buy Renter's Insurance?
« Reply #2 on: December 30, 2016, 10:57:30 AM »
I'd add a fire you cause destroys the apartment building and your neighbours' stuff. Can you afford to cover these other loses as well?
« Last Edit: December 30, 2016, 11:19:54 AM by Retire-Canada »

iris lily

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Re: Self-Insure or Buy Renter's Insurance?
« Reply #3 on: December 30, 2016, 11:03:09 AM »
Back n the stone age when I rented, I never considered the liability issue. For that reason, now, I would have insurance. But I wouldn't bother with it for my stuff. I owned very little that  HAD to be replaced.