Tenants Insurance

[ashfo]

So I am new to MMM, I have been reading for a couple of weeks.  I have a question for renters out there.  What is your take on tenants insurance? In my old apartment it was a requirement of renting, but isn't a lease requirement at my new place.  Is it worth it?  I have a quote for $172/yr after tax, and if I decide to renew will pay all at once so there is no extra fees.  I'm thinking its not worth it, but just want another opinion.

[matchewed]

How much stuff do you have that is difficult to replace? I personally don't have renters insurance because my most expensive thing is my PC (and it's frankly not that expensive).

All you have to do is consider the question of a fire destroying all your stuff. Would it suck yes. But the question is do you have the cash/lifestyle to manage an emergency like that? If so I wouldn't and personally don't. If not and you want to feel safer go ahead as it is not a huge expense.

[StarryC]

$172 a year seems about $50 too expensive.  Can you up the deductible to get it to $120?

I think it is worth it, but not for your stuff.  What if you accidentally start a fire in your rental and destroy the property?  Do you have the money to pay the landlord for repairs?  Probably not- renters insurance would likely cover it under the liability portion of your policy.  They would certainly pay your legal fees, even if your landlords property insurance should cover the repairs. 

What if someone is at your rental and hurts themself by tripping on your rug?  Can you pay their medical bills?  Renters insurance would likely cover the first $500-$5,00 "no fault" and then defend you and pay the judgment if you were found to be at fault.

What if your dog bites someone while you are at the park?  Can you pay their bills?  Renters insurance would likely cover any general negligence claim that is unintentional, including legal fees.

I think of the personal property and additional living expenses coverages as a bonus- yes you are more likely to be burglarized or have damage to your property than any of the above scenarios, but you don't need insurance for that.  You need it for the big losses.

[anastrophe]

My policy cost $130 and will cover us for everything StarryC mentions, plus pay for us to live somewhere else if the house is uninhabitable. It might even be worth it just for the fact that they will replace the food in our fridge in the case of an extended power outage.

[Nothlit]

I have renter's insurance for around $150/year. As StarryC mentions, it's not so much to replace my stuff, but for the liability protection.