In response to Dotty (#2 post), if you can’t find $100 for a years worth of rental insurance, maybe you could consider buying an external hard drive? Or, cheaper still (or possibly free if you don’t exceed a certain size limit), use an online back up solution (i.e. dropbox/amazon/etc.). It would be devastating to lose all your hard work and research.

I do not have renter’s insurance, but after reading the post and comments here, am somewhat perplexed that anyone could debate whether a $10/month renter’s insurance policy – that may include liaibility coverage – is worth it. I also live in New York City. In my building, we have had fire trucks come out to our building too often than I care to think about. Why? People are careless. I cannot babysit my 20-ish neighbors and tell them that while their EVOO is heating on maximum power on their nice le Creuset saucepans, unattended, they shouldn’t engage in phone calls or lengthy e-mails or cellphone text dramas. Come to think of it, my 40-ish neighbors right next door often have their front door open because yet another kitchen “accident” has happened (luckily for us, we have a fire escape right next to my street-side window and a hyper dog with a very loud bark in case the next kitchen “accident” gets really out of hand; the downside to the fire escape is the potential for break-in & burglary).

A few summers ago during a heatwave, we lost power for several days (this was much reported in the news). A “force majeure” event. Everything in my fridge spoiled. I had no insurance to replace my groceries or have a hotel stay to survive the power outage days with A/C, reimbursed to me.

Thanks to this GRS post, and because it’s been in the back of my mind for a while, I filled out an online query form for renter’s insurance. I live in a litigious part of the country, so I requested liability coverage, too. It looks like we’ll pay $18.50/month (I will be able to confirm this when we actually sign the contract).

“I wonder how much longer that will hold up.”

@Tyler (no. 14): This person wasn’t saying same-sex domestic partnerships aren’t covered — just that roommate situations aren’t covered. It really doesn’t strike me as a problem that random “roommates” are not covered on one’s policy, whereas a domestic partner would be. Frequently, roommate situations are transient, and they could be people you don’t even know much about, etc. I’ve had plenty of roommates over the years who I wouldn’t want to insure! This doesn’t strike me as a particularly egregious practice.

I have tried to get coverage in the past but came upon this problem…

I wanted coeverage for $50,000. I also wanted to specify a seperate amount for my engagement ring ($18,000). Each insurance company declined to insure me (admittedly I was just getting automatic online quotes – I never spoke to a “real” person) because the ratio between my policy and the additional specified amount was too low. I either had to over-insure my property or under insure my ring. To be honest everything I own is replaceable (tvs, lounges, etc) except my engagement ring (huge sentimental value and it is very unique) so I was really torn.

I will make it my misison this weekend to get renters insurance and atually speak to someone abotu my conundrum. Thanks for the reminder!

The only situations where insurance makes sense are those where the potential loss is catastrophic – destroys you (or others). Life insurance and automobile liability insurance are pretty good ideas (and legally required, for the latter).

Having your “stuff” burn to the ground will generally not ruin your whole life, incapacitate you, destroy your earning potential, or make you go bankrupt. Personally, as a renter, I have never had and am not planning on ever having renter’s insurance. Nothing bad has happened to me, and most likely never will – and I’m so glad I never wasted my money.

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JD, I could not disagree with you more!

You are arguing two flawed things – 1) That people only insure against the worst tragedies 2) That it’s all about probability.

Re: 1)

If I had a fire, without insurance, I not be made bankrupt but it would cost me a lot of money to replace my life. I don’t have a lot of “stuff”, but I like my life and after a traumatic fire I would actually like to return to it quickly and easily, not build my way up again for the next few years. I carry insurance for that reason as well as against total distaster.

People mentioned students losing all their college books. This might mean you have to defer college for a year because you can’t afford to replace your books and clothes until next year. Is $10 bucks a month worth it to you to not have to do this? Then get insurance.

Re: 2)

As I commented above, a lot of people are mixing up risk and probability in these equations, when these are not the same things. JD: so are you.

People need to consider their case for/against insurance based on RISK, not probability. Of course these events are low probality, but these may not be low risk. A single event (say a house fire) can have more than one consequence, and therefore more than one risk you should consider.

Risk associated with event = probability of event occuring AND consequence of event.

Risk associated with house fire = probability of house fire occuring AND that it ruin your whole life due to bankruptsy = LOW RISK

But risk associated with house fire ALSO= probability of house fire occuring AND I am severely financially crippled for next two years before I replace everything I need and life returns to normal = NOT AS LOW RISK

Yes, insurance companies make money. They are not charities. They do the same thing WE should do – they do a proper consideration of risk. They offer you “relatively” low premiums vs payout based on the risk that you will actually make a claim on the policy. They then spread this risk across thousands of customers. If you make a claim, it’s balanced out by those that do not.

By all means people should assess what different risks they face and maybe decide the risk is low and therefore not carry insurance.

But, please PLEASE do not argue against insurance based on probality and the idea that “it has never happened to me and therefore it’s unlikely ever to happen”. This is really poor advice (not to mention bad math).

We live in earthquake country, and if we’re here when the big one finally comes, I’d rather be the family with money to pay for temporary housing than one of the thousands of people who didn’t think they needed insurance and can’t even find a couch to crash on because half the buildings in town are rubble. That earthquake rider costs as much as the entire basic policy, but oh well. Goodness knows how much property owners will be able to charge in that scenario. A lot. But my kids won’t be sleeping in the street.

Other people have mentioned the liability question, but what brought it home to me was actually a car accident. We were parked when two cars hit each other and crashed into our car (fortunately we weren’t in it). No one would step up to pay the damages while their insurance companies were battling out who was at fault. When we finally thought to call our insurance company, they made sure we were paid immediately. That’s how I learned that the insurance company’s lawyers are always going to be better than someone I can hire to defend me in a liability claim.

I recently used it when a pipe burst and 95% of my home was completely soaked with water. My landlord’s insurance paid for the repair of the house, but it was my renters insurance that covered the majority of the temporary living conditions and replacing $3,000 worth of damaged personal property.

I highly recommend anybody out there renting to pick up some sort of policy.

I’ve bought used books and other things – I don’t have a problem with that.

Yes, clothing stores can be quite limited. Sometimes I won’t find anything worthwhile in an entire mall!

I prefer used books to new ones, too. Maybe it’s something about items with history.

P.S. — I didn’t mean to insult your sense of style! I think it’s *harder* to avoid dressing like everyone else if you have fewer choices, but still possible. (I’ve found things I liked on the sale racks at dept. stores, too.) What I meant to say is, thrift stores generally have more unique items, because everything on the racks is different, whereas new clothing stores have one whole rack of the same pair of pants, and another whole rack of the same top, so the total number of things to select from is smaller. Of course, it sucks when you find the perfect item at a thrift store and then realize it’s not the right size, but I love having more to choose from (and the thrill of never knowing exactly what I’ll find).

I don’t really dress like everyone else… I guess my style isn’t anything way out there, but I try to be faily unique. I also shop sales a lot – try not to just throw money away blindly (or spend a lot) unless I know it’s a brand I love, but that’s a different topic altogether.

My friend was insuring his home as though he lived there, but after a big leak it emerged that he was renting it out and the insurance company did not pay for the repairs. A very espensive way to try and save a hundred or so extra pounds he would have been charged had he been honest about renting out the house.

We were out of phone and electricity for a few days, and out of an elevator for a week (and we lived on the 8th floor). But nobody was hurt. Our possessions weren’t damaged.

I already had renter’s insurance at the time, but it was definitely a good reason to keep it. Things do happen. Sometimes you’re lucky even when they do happen, but better not to count on it.

Thanks for including this information. I’ve lived in this condo for two years! I’ll be clearing this up ASAP.

That means that probabilistically, you will lose money by purchasing any type of insurance. It’s the same as gambling, or getting the “extra warranty” on your TV.

The only situations where insurance makes sense are those where the potential loss is catastrophic – destroys you (or others). Life insurance and automobile liability insurance are pretty good ideas (and legally required, for the latter).

Having your “stuff” burn to the ground will generally not ruin your whole life, incapacitate you, destroy your earning potential, or make you go bankrupt. So take the chance. Odds are you come out ahead. Odds are you realize that you had too much crap anyways.

“What if” reasoning is for the fools wasting their money on lottery tickets. But if the risk is going to keep you up at night – by all means buy the insurance for the sake of your mental health. Life is full of unavoidable risk though.

Personally, as a renter, I have never had and am not planning on ever having renter’s insurance. Nothing bad has happened to me, and most likely never will – and I’m so glad I never wasted my money.