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MYTHBUSTER MONDAY

I don't have enough stuff to need insurance coverage

Since all rental properties are susceptible to a variety of damage, whether it be fire, theft or even a broken kitchen appliance, many experts say there isn't a scenario in which a tenant should go without renters insurance. But it is important to weigh the associated costs, both monetary and sentimental. A common reason individuals avoid renters insurance is they do not think their belongings are worth the coverage. "Many renters underestimate the value of their possessions and would be surprised by how much it would cost to replace the items they have accumulated," says Emily Lyons, a Liberty Mutual property insurance expert. If renters think they do not have enough stuff to warrant a renters insurance policy, Keith Rutman, vice president of specialty property lines for Allstate Insurance, suggests they go around their residence, room by room, and take full inventory of their belongings before making a decision. "Most people usually only think of the big-ticket items, like electronics, but if you really think about it, it's so much more in that," he says. "For example, in your kitchen, it's not only the appliances, but the towels, dishes, utensils and food, too. We find that the average renter in a two-bedroom apartment has about $30,000 worth of stuff." Along with evaluating how much your belongings cost, it's important to consider how much you personally value those items. In some situations, how much you care about your belongs may override cost in your decision to take out a renters insurance policy. "For example, if you just got out of college, are renting a furnished apartment, hardly have any stuff and are not a high-risk person in terms of your lifestyle, you might not care, or need to care, about protecting your belongings," says Robert Hunter, director of insurance for the Consumer Federation of America. "However, if you are renting a penthouse apartment with priceless art on the walls, then you most likely would."

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