How Much Would Your Renter’s Insurance Be?

Are you a renter?

If so, you know exactly what I am talking about. That small amount of money/renter’s insurance (at least where I live) that you pay yearly in order to cover the cost of your belongings, in case of a robbery, fire, etc. that would ruin your items.

Renting was a new concept for my husband and I a year ago, as we moved out of the home we owned, into my in-laws, and now into a rental house in another state. During that transition period, we learned a lot about what it takes to rent out your own home and be renters ourselves. It may seem odd that we are renting out the home we own, yet renting ourselves, but we are living in another state, so we aren’t too crazy!

As we talked with our insurance agency, we had to sit down and think about…

What would it cost to replace all of our belongings?

Have you ever thought about that? Granted this is something you think about when you own your own home, but getting renter’s insurance, made us think about this at a whole new level. I understand that some do not take out policies on their home or items, but this is something we have always felt was worth it. Have you thought about what it would cost to replace all of your belongings, within your home/rental insurance policy?

Our insurance agent put it well: “if you were to shake your home, whatever falls out, would be replaced.”

This made us take a step back and assess.

Thankfully we had recently moved and had purged and PURGED! I still have a little donation station in our home, but it’s not a whole corner anymore! As we walked through our home, we realized that really, we did not need a large policy. In fact, I believe we have one of the lowest policies they offer because we honestly do not own things that are outrageously expensive. Do I think it is wrong to own expensive items? No, but there are reasons to own and live with less. I am going to take this specifically from a renting perspective, as this is the situation we are currently in, but this can also be applied to those who own their own home.

Why Have Fewer Possessions When Renting?
1. More expensive policy. Seems like a no-brainer, but the fewer items you own, the smaller insurance policy you will have to take out, saving you money in the end. Granted, these are not earth-shattering dollars, but a penny saved, is a penny made, right?

2. Items become more expensive. The more your items cost to replace, the cost of what you paid for them suddenly goes up, as you now pay a yearly “fee” to insure them.

3. Less to move. When renting, often you do not stay in one place for the rest of your life. That means at some point, you will be hauling all of your stuff to a new place. How big of a U-Haul do you have to rent? I was embarrassed that we could not fit all of our belongings in a 21 foot moving truck. We learned that if we ever moved again, we would not want to take as much STUFF with us, so purge we did!

4. Creates boundaries. When renting and thinking about an insurance policy, does it make you think about how much you spend on items? Granted I don’t sit at the store and think “oh, we’ll have to raise our policy if we bought this item…” that would be a tad ridiculous. Although, if we constantly buy and buy (without regards to our money, space, etc.), we would just be cluttering our lives with the unnecessary. What are some boundaries you have set up for yourself and your family when it comes to spending?

5. It is just plain easier. Fewer possessions means less stuff to maintain, fix, put away, think about, and see, which means more time for the things you want to do. It’s just that simple.

I ask again…

What would your home/renter’s insurance be? Do you own more than what you care to replace? Care to move? Think about decluttering; you never know when that move might happen!