Why Renters Insurance Is Worth Buying

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With college-graduation season here, scads of young adults will soon rent their first apartments and possibly buy their first renters insurance policy.

There’s little reason not to get it: The average policy costs just $190 per year, according to the National Association of Insurance Commissioners. For the price of a few lattes a month, renters can cover their possessions, the cost of accommodations elsewhere if their home becomes uninhabitable, and liability for accidents on the premises. They just need to consider what kind of policy is best.

“The biggest problem with renters insurance is that a lot of people don’t have it,” says Rebecca Korach Woan, CEO of Chartwell Insurance Services in Chicago.

About 95 percent of homeowners have policies to cover theft, fire, and other home hazards, but only 41 percent of renters carry equivalent coverage, according to the Insurance Information Institute.

To help you find the best policy whether you’re a first-time renter, a longtime tenant, or a downsizing homeowner entering the rental market, consider these suggestions.

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