A colleague recently shared a story about her former apartment building burning down. Luckily, she wasn’t inside and no one was injured—but all of her and her neighbors’ possessions were lost in the flames. As she recounted the unfortunate tale, she mentioned how grateful she was to have renters insurance, which covered the replacement cost of her items and paid for her hotel for a month. I cringed, remembering my long-forgotten vow to invest in renters insurance months ago.
Most of us recognize the importance of obtaining things like health insurance because we know that we’ll have to visit the doctor at some point and, whether it’s a routine check-up or a trip to the ER, it can get pricey. When situations seem less likely—such as a building fire or financial issues while traveling—we tend not to take the basic steps to protect ourselves. However, the types of insurance that we’re less inclined toward are more beneficial and necessary than we realize.
Pet Insurance
Pet food and general upkeep alone adds up, but when you factor in shots at the veterinarian’s, teeth cleaning, grooming, and obedience training, pets are almost as expensive as kids are! Because they do become part of the family, pet owners are willing to spend whatever it takes—and it often takes a lot—to keep their pets safe and healthy.
I’ve heard multiple stories of families taking out loans and getting new credit cards to pay the thousands of dollars owed for treatment when illness occurs or surgeries are needed. A coworker’s friend recently shared with me that she spends about $50 a month on pet insurance. “However,” she says, “since Teddy [her dog] eats a lot of things on the ground, I’ve probably saved about $5,000 since I got him five years ago.” Teddy’s penchant for mischief (like most dogs) has required stomach surgery and treatment of various infections. “Bringing a pet to the vet with no insurance is a serious money drain,” she adds.
It can cost anywhere from $2,000 to $6,000 to insure a pet for the duration of its life. Like other types of insurance, deductibles and what’s covered vary based on the chosen policy. Some plans cover only emergencies, while others offer some coverage for trips to the vet. Whether or not you need to insure your pet could be asked in a different way: how far would you go for your pet? If you—like many people I know (myself included)—consider your pet a member of your family and would pay any amount for its health, you should look into getting pet insurance.
Renters Insurance
A story recently published in the Oakland Tribune states that only 43 percent of renters in the U.S. have rental insurance. Most people either don’t know enough about it to know that it’s necessary, they believe it’s too expensive (it’s actually quite affordable), or they feel that they don’t own enough high-value items to justify the extra expense. These myths prevent renters from insuring themselves and their assets.
Renters insurance covers the loss of possessions due to fire, theft, or explosion. Some people believe that such things are covered under the owner’s homeowners insurance, but that’s not always the case. Structural damage to a rental property should be covered by the landlord’s insurance, but there’s nothing to protect the renter’s belongings unless that person invests in renters insurance. While this type of coverage does offer reimbursement for the damage caused by some natural occurrences like hail and lightning, there is no protection for earthquakes or flooding.
The best argument for renters insurance is that it’s a relatively inexpensive form of protection for everything we own, including our bicycles and items that are in our vehicles. It can even help cover the medical expenses of people who are hurt at your home. The price depends on where you live and what type of coverage you choose, but most are under $200 for a year. A little over $16 a month (and remember, that’s the high end of the price range) is a small price to pay for the guaranteed protection of your valuables. The loss of just one major electronic device—TV, computer, etc.—would probably cost more than the insurance policy.
