Renter's Insurance - How Low Can I Go?

[Bretticus]

Greetings fellow Mustachians,

I am a very recent convert, but have rolled up my sleeves and dived in. I just moved money from a Roth to finally, and completely, wipe out my credit cards. Student loans now in the cross-hairs...

And Renter's Insurance. I realize now, looking at a room full of crap that I actually wouldn't miss if it was stolen/burned/alien-abducted, and would like to not have to pay an annual $223 premium.

But...

How about the liability portion of Renter's Insurance? I don't plan on engaging in any activity that would bring litigation, but this would be a hefty bill if ever it did happen. 

Any thoughts or advice from the community?

[marielle]

Renter's insurance is one of the few insurances you actually want to have and it's cheap. $223 seems a little high (mine was $148) but you can shop around. It's not really for covering your possessions, but more like damage if your toilet overflows and destroys the floor, or if someone is a guest in your place and they hurt themselves...stuff like that. It will even cover the hotel stay + food if something happens to your apartment. Sometimes you get a discount with the company you already have  car insurance for, so you can check that too. Also...if your landlord is requiring it, don't even question it!

[neophyte]

I was able to find liability only renters insurance for under $100 a year. You can probably do better by shopping around some.

[FLBiker]

Hmm.  I'm no expert, but before I read the responses, I was going to say $0.  I never had any, and I've rented a half dozen or so places over ~15 years (granted, 6 years were overseas).  Maybe the liability concern is legit, though, especially if you have some savings / investments.

[Felicity]

$223 a year does seem a little high, unless you're in a very urban or high crime area, or unless the coverage is really high.

I actually just posted about renter's insurance so I've got example numbers handy:

Our old policy when we lived in Somerville (just North of Cambridge, MA) had a limit of $15,600 for personal property replacement, $3,130 for loss of use of our apartment, $100,000 for each occurrence of personal liability, and $1,000 medical per person. These core coverages cost us $184 per year, just over $15 per month. Our renter’s insurance now, quite a bit farther out of the city, costs us just over $10 per month for similar coverage.

Hmm.  I'm no expert, but before I read the responses, I was going to say $0.  I never had any, and I've rented a half dozen or so places over ~15 years (granted, 6 years were overseas).  Maybe the liability concern is legit, though, especially if you have some savings / investments.

Yeah, the liability portion of it is huge! Paying less than $100 a year for $100k+ potential coverage is amazing - exactly the kind of thing insurance is supposed to be there for, especially if you have a lot of assets.

[Larsg]

In all my life I have not ever had it as at the end of the day, it's all just stuff. Better to pay attention to things that might cause harm - e.g. hoses on the back of your washer and dryer, develop a system to ensure that you are turning off anything that could cause a fire, follow good security tips for when you are are not home to make it appear that you are, and so on. Save your money you would have spent by buying some very sexy stock every month with your savings.

[GizmoTX]

Dallas apartment complexes require renters insurance for a minimum liability amount; contents coverage is up to the renter. DS is currently paying $16/month.

[Bretticus]

Thanks, for the feedback, all! I think it sounds like I've probably 'set it and forgot it' a little here, and shopping around (and adjusting my $ value of physical items) should help bring this down quite a bit.

I'm tempted to ditch RI altogether, though for a $100 I'd be willing to pick up the liability, in case I decide to move within the coverage year to a cheaper place that has firmer renter's insurance requirements.

Ah yes, 'Rent in Berkeley' (=ridiculously-priced college town)--a topic I'll have to cover in another post...

Thanks again, guys, MUCH appreciated!
-B

[Paul der Krake]

Shop around. I'm paying $75 for 12 months with 100k liability (the mandated part) and 5k contents.

[Bretticus]

Cool--I'll definitely price out policies, but sounds like you snagged a great deal, congrats!

[chemistk]

Renter's insurance is a no-brainer in my book.

We went out on vacation in August for 10 days and a day or two after we left, a water line feeding a toilet gave up the ghost. The whole place was totaled. The restoration company had to tear 2/3 of the 1,600 sq. ft. place down to the studs and replace nearly everything (subfloor, electrical, cabinets, drywall, etc.). Many of our possessions were destroyed. Our insurance company ended up paying out over $13,000 (hotel stay, new item replacement, existing item relocation and restoration) when it was all said and done. Our policy only cost ~$15 a month.