Are There Age Restrictions for Purchasing Renters Insurance?
Most homeowners know they should get an insurance policy to cover the value of their house and their belongings – in fact, it can be difficult to get a mortgage without having an insurance policy. For renters on the other hand, insurance can seem unnecessary. Especially since there usually isn’t a long-term vision in the place they are currently living and most renters are still young with financial constraints. Of those who were under 35 years old in 2016, 65 percent were renting. A good renters insurance policy could save a tenant from financial disaster in case of damages or loss.
With that in mind, you shouldn’t just go buy the first policy you come across. Make sure to carefully compare the best renters insurance policies to ensure you’re getting a friendly price with the right coverage.
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What is Renters Insurance?
Renters insurance is similar to homeowners insurance in many respects, but one key difference is that renters insurance doesn’t cover the building itself. The landlord must have insurance to cover the building. The renter will be able to focus on covering their personal belongings inside of the space they are leasing. That’s why renters insurance can seem more affordable.
With renters insurance, a renter’s personal property will be insured in case of theft or other damages. Depending on the policy, it can cover living expenses for additional living if your place of residence is deemed uninhabitable. It can also cover costs if a guest is injured inside the apartment.
Is There a Minimum Age Requirement for Purchasing Renters Insurance?
Renters insurance is only needed for those who rent an apartment or house. Minors who are not yet 18 but live on their own are able to buy renters insurance. Most teenagers at this age are still living at home with their parents or guardians so there is no need to consider renters insurance. The first time renters insurance may be necessary is when a child leaves for college and stays in a dorm or off campus residence.
Believing it is more expensive than the benefits it could provide, some young adults choose to forgo renters insurance. For the cost of a single meal out once a month, a person can buy a renters insurance policy. So, while cost can be a big consideration for young people in entry-level jobs, it would be far more financially disruptive to have their belongings potentially destroyed in a fire if they don’t have insurance.
One of the cons of buying renters insurance, however, is that people aren’t protected from everything. It won’t cover items in the case of some natural disasters, such as tornadoes.
Is There a Maximum Age Restriction for Purchasing Renters Insurance?
Renters in their early years can, and most-likely should, buy renters insurance. They’ve spent a lifetime collecting their belongings, and it could cause a real financial crisis if they lost those items and had to shoulder the out-of-pocket costs to replace them.
There are pros and cons to buying renters insurance at a later age. One of the biggest pros is it offers a chance to protect assets as well as the out-of-pocket cost of replacing items. If someone were to be injured in the renter’s apartment, all of the renter’s assets could be up for grabs in a lawsuit.
One of the cons is this type of insurance still carries a deductible, usually ranging from $500 to $1,000. Older renters who may have already given all of their valuable items to younger generations of the family might not feel carrying a deductible and paying for the insurance is worth it.
Is There an Optimal Age to Purchase Renters Insurance?
Purchasing renters insurance is likely a good idea for any renter – regardless of age. But for some renters, it does make more sense than for others. Renters who have more belongings or items of value should seriously consider renters insurance because they will have to shell out a lot of money to replace their possessions if something should happen.
However, it’s potentially even more important to protect assets. Renters who have sizeable bank accounts because they are saving to buy a house should buy renters insurance just in case someone is injured while visiting their apartment. One big lawsuit could set a renter back hundreds of thousands of dollars in damages, a potentially crippling blow to a person’s future.
To fully safeguard their future, all renters should probably purchase renters insurance if they are able. Renters insurance is much more affordable than insurance for homeowners so cost shouldn’t play much of a factor when deciding whether to get it or not. For a low cost every month, renters will not only be buying peace of mind, but also securing their finances. They’ll be able to shop around to find a competitive policy, whether it’s through a brick-and-mortar business or an online source.
When it comes to your personal belongings, it’s much better to be safe than sorry.
Jeff Gitlen is a Content Associate at LendEDU, a company dedicated to helping consumers with their personal finances.