Look, there really is only one kind of insurance policy that is guaranteed to pay out so long as it is maintained and that is Life Insurance. It is possible to go through your entire life and never get sued and never have any of your personal belongings lost, destroyed or stolen. You may never be involved in a car accident or have your car damaged by a falling branch or run away shopping cart. But one thing is certain - we all will die.
So no, I would not consider Renters Insurance to be a waste of money any more than any other kind of Property and Casualty product. The reason is that if you have it, you have peace of mind.
A renter’s policy is an example of sharing a risk. There is a risk that your apartment could catch fire and destroy everything that you own. If you are concerned about that possibility you purchase a policy that pools you with others in a like situation so that if someone in the group has that fire, the money to make that person whole is available. To the person receiving the funds, the policy was a windfall, to everyone else it was an expense but all of the participants shared the risk.
That is a great question! I guess that you have to decide what a waste of money really means to you, to answer the question properly. If you didn't buy it, and something happened that destroyed all of your stuff, then you wasted all of the money that you spent to buy your stuff. With insurance, your stuff would be replaced, and the money not wasted. But if you bought it, and nothing ever happened, is the covering of that risk even though you didn't need it a waste? That's the answer to your question. Is security and peace of mind a waste of money to you? Just a different way of looking at risk. Thanks for asking!
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So no, I would not consider Renters Insurance to be a waste of money any more than any other kind of Property and Casualty product. The reason is that if you have it, you have peace of mind.