Imagine you are a twenty-something post-grad that has just moved to the big city. You just got your first "real" job, and you are on the hunt for an apartment. You find a place you love, but the landlord ends the conversation asking if you have a renters insurance policy in place. A what?! Why would you possibly need renters insurance? Doesn't the landlord have everything covered in their homeowner's policy?

Renters insurance is a type of property insurance that can cover the loss of your personal belongings, liabilities, and living expenses. We'll break down what renters insurance does and doesn't cover to help you determine whether or not you, the tenant, will need it.

Unbeknownst to many renters, your personal property is not covered by your landlord's homeowner policy. This means that if you lose all of your possessions in a house fire, you will not be paid out by your landlord's insurance company.

Renters insurance covers you against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and certain types of water damage. In fact, most policies will cover your items even when they aren't on the property premises. Was you laptop stolen on vacation? You are covered under your renters insurance!

There are two options when choosing personal property coverage through renters insurance: replacement cost and actual cash value policies.

Replacement cost policies will cost more out of pocket, but they provide a large enough payout to replace the damaged or lost items at full retail price. Remember that laptop that was stolen on vacation? Even though it was three years old, you get the brand spanking new replacement.

replacement cost policies will replace your items as full retail price

Actual cash value policies will save you a bit on your premiums price; however, they will only pay out based on the value at the time the policy is taken out, minus depreciation value. With this type of policy, your stolen laptop probably will only get you a payout of about a quarter of what you purchased it for. You can use this handy depreciation calculator yourself to estimate the actual cash value of your personal belongings.

Liability insurance also comes standard with renters insurance policies. It protects you from any potential lawsuits from bodily injury and property damage that occurs on the premises. If you accidentally start a kitchen fire while cooking dinner, or your best friend's girlfriend slips and falls down your wet stairs due to the melting snow that was tracked in, then your renter's liability insurance can cover you if you are sued for medical payments or for the property damage. It can even cover your legal defense fees.

liabilities renters insurance covers you in case of house damage

Additional living expense coverage also comes standard in renters insurance policies. It provides financial coverage when you have to temporarily live elsewhere in the case of damage to the property at which you reside. Some examples of what costs are covered are the following:

  • Hotel bills, or temporary rentals
  • Costs of eating out due to loss of kitchen
  • Laundry bills
  • Furniture rentals
  • Storage costs
  • Pet boarding
  • Mileage
  • Utilities

The amount the insurance company will pay out on expenses for this coverage depends on the difference between what you would typically pay for these costs versus what you would pay during the displacement.

Now that you understand the basics of renters insurance and what it covers, do you think it's worth it? You might still be up in the air, especially because renters insurance is probably super expensive, right? Wrong!

renters insurance is not expensive

A survey conducted by Nationwide found that 75 percent of those without renters insurance don't realize they can get monthly coverage for as little as the cost of a pair of movie tickets.

average renters insurance premiums

The average cost of renters insurance in 2017 was $180 a year, or $15 a month.

Many insurance companies offer discounts if you bundle other insurance policies, such as your car insurance with your renters insurance. Also, things like security systems, deadbolts, and smoke detectors can often give you a discount on the price tag.

Still not sure if you need renters insurance? I suggest doing the following:

  1. Create a home inventory list of all of your belongings. There are tons of apps that make this part easy, such as Home Contents.
  2. Write down the value of each item you want to be replaced if your apartment was to, let's say, burn down. If you don't know what you bought it for, look up the value online.
  3. Include receipts and appraisals when you can, especially for any high priced items.
  4. Save pictures of all the items (the app will help with this, too).

Creating this home inventory list will be important and make your life a heck of a lot easier if you do get renters insurance. But more importantly, it can give you an estimate of the price of your personal belongings.

So maybe you don't think you need renters insurance if you do not have a high value on your belongings. But I bet you might be surprised at how much money is invested in those items!

personal belongings value adds up quick

In short, renters insurance is most likely worth it. Although it's not a necessity, the value of being covered for potential personal property loss, accidental liabilities, and financial coverage in the event of a catastrophe is well worth the low annual premiums. And it may someday save you thousands of dollars. If you are a current renter, do yourself a favor and get some insurance quotes today!

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Over two years into the most momentous event in our lives the world has changed forever … Some of us have PTSD from being locked up at home, some are living like everything’s going to end tomorrow, and the rest of us are merely trying to get by. When the pandemic hit we entered a perpetual state of vulnerability, but now we’re supposed to return to normal and just get on with our lives.

What does that mean? Packed bars, concerts, and grocery shopping without a mask feel totally strange. We got used to having more rules over our everyday life, considering if we really had to go out or keeping Zooming from our living rooms in threadbare pajama bottoms.

The work-from-home culture changed it all. Initially, companies were skeptical about letting employees work remotely, automatically assuming work output would fall and so would the quality. To the contrary, since March of 2020 productivity has risen by 47%, which says it all. Employees can work from home and still deliver results.

There are a number of reasons why everyone loves the work from home culture. We gained hours weekly that were wasted on public transport, people saved a ton of money, and could work from anywhere in the world. Then there were the obvious reasons like wearing sweats or loungewear all week long and having your pets close by. Come on, whose cat hasn’t done a tap dance on your keyboard in the middle of that All Hands Call!

Working from home grants the freedom to decorate your ‘office’ any way you want. But then people needed a change of environment. Companies began requesting their employees' RTO, thus generating the Hybrid Work Model — a blend of in-person and virtual work arrangements. Prior to 2020, about 20% of employees worked from home, but in the midst of the pandemic, it exploded to around 70%.

Although the number of people working from home increased and people enjoyed their flexibility, politicians started calling for a harder RTW policy. President Joe Biden urges us with, “It’s time for Americans to get back to work and fill our great downtowns again.”

While Boris Johnson said, “Mother Nature does not like working from home.'' It wasn’t surprising that politicians wanted people back at their desks due to the financial impact of working from the office. According to a report in the BBC, US workers spent between $2,000 - $5,000 each year on transport to work before the pandemic.

That’s where the problem lies. The majority of us stopped planning for public transport, takeaway coffee, and fresh work-appropriate outfits. We must reconsider these things now, and our wallets are paying

the price. Gas costs are at an all-time high, making public transport increase their fees; food and clothes are all on a steep incline. A simple iced latte from Dunkin’ went from $3.70 to $3.99 (which doesn’t seem like much but 2-3 coffees a day with the extra flavors and shots add up to a lot), while sandwiches soared by 14% and salads by 11%.

This contributes to the pressure employees feel about heading into the office. Remote work may have begun as a safety measure, but it’s now a savings measure for employees around the world.

Bloomberg are offering its US staff a $75 daily commuting stipend that they can spend however they want. And other companies are doing the best they can. This still lends credence to ‘the great resignation.’ Initially starting with the retail, food service, and hospitality sectors which were hard hit during the pandemic, it has since spread to other industries. By September 2021, the US Bureau of Labor Statistics reported 4.4 million resignations.

That’s where the most critical question lies…work from home, work from the office or stick to this new hybrid world culture?

Borris Johnson thinks, “We need to get back into the habit of getting into the office.” Because his experience of working from home “is you spend an awful lot of time making another cup of coffee and then, you know, getting up, walking very slowly to the fridge, hacking off a small piece of cheese, then walking very slowly back to your laptop and then forgetting what it was you’re doing.”

While New York City Mayor Eric Adams says you “can't stay home in your pajamas all day."

In the end, does it really matter where we work if efficiency and productivity are great? We’ve proven that companies can trust us to achieve the same results — or better! — and on time with this hybrid model. Employees can be more flexible, which boosts satisfaction, improves both productivity and retention, and improves diversity in the workplace because corporations can hire through the US and indeed all over the world.

We’ve seen companies make this work in many ways, through virtual lunches, breakout rooms, paint and prosecco parties, and — the most popular — trivia nights.

As much as we strive for normalcy, the last two years cannot simply be erased. So instead of wiping out this era, it's time to embrace the change and find the right world culture for you.

What would get you into the office? Free lunch? A gym membership? Permission to hang out with your dog? Some employers are trying just that.

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Did you hear about the Great Resignation? It isn’t over. Just over two years of pandemic living, many offices are finally returning to full-time or hybrid experiences. This is causing employees to totally reconsider their positions.

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