When it comes to insurance coverage, don’t believe everything you hear. Understanding fact versus fiction can help you make the best decisions when it comes to choosing coverage that’s right for you.

Myth 1: Renter’s insurance coverage is expensive. While premiums for renter’s insurance will vary depending on the coverage and deductible selected, the average cost of a renter’s insurance policy is usually relatively affordable. According to data from the National Association of Insurance Commissioners, the average renter’s insurance policy costs just $184 per year for coverage ranging from $30,000 to $50,000 with a $500 to $1,000 deductible.

Myth 2: The landlord’s insurance covers me. Your landlord’s insurance generally only covers the building where you live—not your personal belongings and your liability.

Myth 3: I don’t need personal liability insurance. Your landlord’s policy most likely does not include liability coverage protecting you for something that happens in your rented residence. You could be held legally responsible for injury to another person or damage to another person’s property if an incident occurred within your rented residence, or elsewhere.

Myth 4: I don’t need insurance because I don’t own very much. Most people’s belongings are worth more than they think. To protect what you have invested in your possessions, you should purchase renter’s insurance.

For more information or to obtain a quote on renter’s insurance, call 888/815-9847, visit AAA.com/Insurance, or stop by your local AAA Store.

This article originally appeared in the July/August 2017 issue of AAA World.

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