Author Box
Articles Categories
All Categories
Articles Resources

Is Renters Insurance Beneficial for Low Income Families?

February 27, 2012 | Comments: 0 | Views: 151

The majority of renters in the United States are lower income families that do not possess the capital or the credit to acquire a home loan. Because most of these families struggle to pay their existing bills, they do not consider things such as renter's insurance. Unfortunately, many low income families also lack the knowledge of good financial planning and management. Some may assume that because they don't have much to protect, insurance would be a waste of money. With financial security as the goal for struggling families, there are many things to consider, including insurance.

The first thing to consider is priorities. Is financial security truly a gift you want to give your children? If it is, lesser important expenses may have to be eliminated. There are many things that low income families spend money on that are frivolous and hinder them from achieving long term financial security. One of the biggest and most destructive drains on many families is cigarettes. Purchasing two packages of cigarettes per day for an entire month adds up to around $300, not to mention the eventual health care bills associated with cigarette smoke. Other impractical expenses for struggling families who want to achieve financial security are alcohol, cable or dish TV, fast food, convenience food, salon treatments for hair and nails, recreational vehicles as well as a menagerie of other income-draining activities. Future security may depend on present sacrifice.

The second thing for struggling families to consider is implementing and sticking to a budget. A budget is a super tool for the financially wise. Once a family has a clear picture of their expenses and budget, renter's insurance is the next thing to consider. All that a family has worked hard for by making cuts in their spending may be lost instantly due to theft, fire, flood or natural disaster. Even if a family has not spent much on personal possessions, the thought of replacing everything at one time can be overwhelming and crippling. Adding up all that would have to be purchased at one time can be a sobering reminder of the importance of renter's insurance.

Once you are ready to purchase renter's insurance, it is time to do your homework. Do not just purchase from the first company that you find. Look online, look in the phone book, ask around, or check with web reviews and professional blogs about insurance. Insurance agents are generally more than happy to ask any question you may have. No question is too dumb. Agents are there to answer your questions and are usually experts in explaining things in simple, easy to understand terms. Once you are familiar with the terms and rates, call around or check on websites to find the best renter's insurance policy for you and your family.

After the issue of insurance has been addressed, families may then focus on allotting for savings and investments in their budget. Savings and investments are both great ways to insure a more secure financial future.

Find the most competitive online insurance quotes at

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Online Insurance Quotes


Rental Insurance

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 243

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 221

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykovl Insurance > Home Owners Rentersl December 27, 2012 lViews: 380

Often times people think a mobile home doesn't require insurance against a loss. I will tell you why it does and how to shop for it.

By: Mark P Kroberl Insurance > Home Owners Rentersl April 16, 2012 lViews: 346

Having home insurance is pretty important, especially if you live in a house like some of those in the movies. Here are some movies that make you glad you have homeowners insurance.

By: MaryLou Walstonl Insurance > Home Owners Rentersl April 13, 2012 lViews: 278

This article will talk about some of the most common disasters that occur in the home. You won't be able to stop things at all times, but with knowledge you will be better prepared and know what to

By: MaryLou Walstonl Insurance > Home Owners Rentersl April 13, 2012 lViews: 270

The value of your home is only one of the many factors an insurance company will consider when calculating your rates for homeowners insurance. Here are ten of the most common factors that affect the

By: Kelly C. Williamsl Insurance > Home Owners Rentersl April 07, 2012 lViews: 273

If you are under the impression that it will be hard for you to find an insurance policy that will give the right amount of coverage for your home, then you are highly mistaken. Believe it or not,

By: David D Mortell Insurance > Home Owners Rentersl April 06, 2012 lViews: 281

Being responsible for a family can include a plethora of tasks and can take up much time to organize all the insurance policies and papers to ensure that every family member has access to medical,

By: Nelson McWilliamsl Insurance > Visionl March 02, 2012 lViews: 238

Whether renting a car for business or for pleasure, the last thing anybody wants to have to worry about paying for damages to a rental vehicle should it happen. For this reason, there is car rental

By: Nelson McWilliamsl Insurance > Car Autol March 01, 2012 lViews: 138

Owning a small business comes with many tasks, goals, responsibilities, and obligations. One of the primary obligations of being a business owner is being legally responsible. General liability

By: Nelson McWilliamsl Insurancel March 01, 2012 lViews: 147

There are many things in life that people spend a good amount of their hard earned money to obtain. Items such as a car or a house require a significant investment. If damage to these items were to

By: Nelson McWilliamsl Insurancel March 01, 2012 lViews: 141

There are a number of different types of insurance. Some types of insurance are required by law to be taken out while others are optional. In either case, insurance can be a benefit to anyone who has

By: Nelson McWilliamsl Insurancel February 29, 2012 lViews: 111

Some people realize the benefits of having dental insurance but have a hard time understanding how it all works. Every dental plan is different depending on the insurance provider. There are some

By: Nelson McWilliamsl Insurance > Dentall February 27, 2012 lViews: 190