Question

Charles is a consultant living in a rented apartment. Which of the following statements would represent a logical position for him to take on renters insurance? Select the best answer from the choices provided.
A. Charles should buy renters insurance because the premiums are not substantially less than the value of his belongings.
B. Charles should buy renters insurance to protect the value of the property.
C. Charles should forgo renters insurance if the premiums will quickly overtake the value of his belongings.
D. Charles should forgo renters insurance if the deductible is substantially less than the value of his belongings.

Answer 1

C. Charles should forgo renter's insurance if the premiums will quickly overtake the value of his belongings.

Renter's insurance is a useful and valuable tool to protect tenants against loss  or damage of  their property, and is a wise purchase in most cases. However, if you are paying more every month in your insurance premiums than the total value of the goods you are protecting, the insurance may no longer be worth the cost.