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.
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.
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
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!
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.
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:
- Create a home inventory list of all of your belongings. There are tons of apps that make this part easy, such as Home Contents.
- 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.
- Include receipts and appraisals when you can, especially for any high priced items.
- 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!
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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The National Financial Educators Council (NFEC) surveyed young adults in 2017 and asked them what high school level course would benefit their lives the most.
The majority responded that money management was the course that would be most beneficial.
With personal debt is at its highest record and COVID-19 threatening to have the hardest economic effects on youth, understanding money and finances is an important life lesson that should be taught to children at a young age.
The following is a list of the best financial literacy lessons and tips to teach children throughout different life stages.
I thought I had a pretty good handle on my finances out of school. I worked several jobs while attending university and had little to no problem managing my income. However, once I graduated, I realized how much more complicated personal accounting could really be.
There were so many variables I needed to keep track of. Biweekly bills, monthly charges, and general necessities amounted to a heap of confusing numbers that were often impossible to decipher. The funniest part was that I was actually trying to do this by hand (I don't know what I was trying to prove to myself, either).
After messing up for the 17th time, I decided to give Microsoft Excel a shot. I used Excel a bit in school and I knew all the big-wig finance people used it, so what could I possibly have to lose? The answer is about six hours of my precious time. Excel isn't much of an improvement over handwriting and it's still dependent on the user to manually input all of the information. It's like doing everything by hand with the slightest help, meaning that it still required a tremendous amount of time and concentration. Well that was all for nothing, I guess.
It's sort of funny. I was certain that I could manage my personal finances with ease, when it's practically a full-time job. I was already stressed out enough with my first job and I knew I didn't have enough time to give my finances the attention it deserved.
That's why I decided to try out a budgeting app. My best friend told me that he uses an app called Truebill to manage his finances. "What does it even mean to manage your finances?" I asked him. He told me that Truebill was the personal financial assistant I wished I could have. It could aggregate all of my account information into one place and give me specific insights and actions.
I loved the idea of having full control over my finances, especially during a time of financial uncertainty, and I realized that Truebill would be the easiest way to accomplish this. The user interface is incredibly simple and intuitive, so it doesn't even feel like a finance app! Truebill offers a multitude of features, with their most popular being the ability to cancel subscriptions with the press of a button.
Okay, I had no idea how many subscriptions I was still subscribed to. In fact, I wasn't even using a quarter of the subscription services I was signed up for. Subscription boxes, streaming services, my old gym, and even an old subscription to my favorite magazine--it was all there and I was livid. How could I let myself waste all of this money and how did I never catch this? Thank goodness for Truebill.
Truebill also offers bill negotiations. There is a 40% fee based on how much you save and Truebill even claims that there is an 85% chance that they'll be able to lower your bill once a negotiation is requested. Why wouldn't I take them up on this? There was zero risk and I would only have to pay once my bill was lowered (which means that I would be saving money regardless).
More standard features of Truebill include the ability to generate a credit report on-demand and even request a pay advance. I only used the pay advance feature once when I wanted to buy a gift for my mom, but didn't have enough cash in hand and Truebill automatically reimbursed itself when I got my next paycheck.
The credit report is another fantastic feature and practically taught me what good credit meant. Truebill's credit report basically shows you which financial decisions have the most significant impact on your credit score and ways that you can improve your credit month-over-month. I've never had such control over my credit and it feels good.
I'll be the first to admit that I was extremely naive coming out of school. I figured that as long as I was attentive, I could manage my finances with ease. We manage money to some extent throughout our entire lives, but once you're thrown out on your own, it's a completely different story. With Truebill, I've finally been able to take control over my finances and stay on top of all of my responsibilities.
My buddies and I always try to make it out to a game, but we never really care which one we end up at. Obviously we have our favorite sports and teams, but it was rarely about what game we went to or who we saw playing. It was about watching the game live.
In the early months of lockdown, all we had was Korean baseball, and trust me, we loved it. The only issue was, none of us had any idea what the commentators were saying. Even then, a few of my friends weren't huge fans of baseball. They were into sports like football and basketball, ones that moved at a quicker pace with less down-time in between plays.
We decided to see if there were any other events going down and came across horse racing. Yes, horse racing. It was perfect--short, fast-paced, and most importantly, an opportunity for betting.
I had never really considered watching a horse race any time other than the Belmont Stakes, but the prospects of the sport seemed exhilarating. Even better, with horse racing we knew we could still recreate the atmosphere of a race track. Salty snacks? Check. Stale beer? Check. A simple and easy way to bet? Check.
One quick Google search later, we came across TVG, powered by FanDuel. It's an online betting platform that takes you right to the heart of the action. We were a little apprehensive about using a mobile app to place our bets, but TVG's ability to bet on live horse races from all over the world was too good to pass up.
Here are 5 reasons why we are obsessed with horse racing thanks to TVG:
1. Betting has never been easier
Use your phone or computer to watch and bet on live horse races in real-time. TVG offers a bunch of features to make betting even simpler--live odds and handicapping tips leverage recent learnings to help you make your best bet. Not to mention, TVG's exclusive race content and wagering guide offers an under-the-hood look into the strategy behind horse race betting.
2. The biggest selection of horse races out there
If you're looking to drop a little dough on a horse race, chances are your best option is your local race track. But watching the same few horses races over and over again isn't the most exciting thing. With TVG you have access to over 150 tracks worldwide with races happening consistently throughout the day.
3. Get a generous sign-up offer when you place your first bet
Once you register your account, you will be eligible for a $200 risk-free bet. All you have to do is place your first bet and you're covered. If you happen to lose, TVG will insure you for up to $200 as a sort of wagering credit. I may have been a little trigger happy when placing my first bet, so having this insurance was a great perk. There are also a bunch of promotional offers available year-round.
4. Making deposits and cashing out at the touch of button
With a ton of payment options such as PayPal, BetCash, debit/credit, wire transfers, and other third-party services, making a deposit is a breeze. But what about the payout? Depending on your deposit method, your withdrawal will be available in a few days. No more waiting in-line to collect your winnings!
5. Watching live races with your friends while betting is exhilarating
Even when we were watching Korean baseball, Zoom calls with my friends were a little dull.
With TVG, we haven't had this sort of fun in months! Every weekend we'll turn on a race and throw our bets in. After a few races, and quite a few drinks, we'll tally up our winnings to see who won the most! Sometimes it's not even about making money, but just having a good time.
TVG is the perfect way to add a little excitement to an otherwise mundane afternoon. It introduced me to the world of horse racing, a sport I never would have considered otherwise.
The races just keep ramping up and thanks to TVG, I can always get in on the fun.