Do I Need Renter’s Insurance?

  • Posted by K. Cooper
  • 04.27.18
  • 3:21 pm

Renter’s insurance is an important coverage no tenant should go without. It’s easy for renters to think of rental insurance as a needless bill. Since they don’t own the property, they think they don’t need insurance. Often, this comes from a common misconception.

Renter’s insurance does not cover the rental property you live in. It covers the contents of the rental property that you own as well as you. In other words, your landlord carries insurance for the property but not insurance for your possessions or against any liability you might incur. For example, if a fire destroyed the rental unit, the landlord’s insurance would cover the building but not your possessions that were destroyed. If you have renter’s insurance, it would cover your possessions.

Renter’s insurance consists of rental-content insurance and rental-liability insurance. The content insurance covers items that are destroyed, stolen, or lost. Rental liability insurance protects the renter against being forced to pay for an accident that causes damage to the property or an individual.

 

Inexpensive Protection for Items

Protecting your important possessions can cost $12 per month or less. This protection can replace collectibles, furniture, household items, electronics, jewelry, clothes, and other essentials. Theft is a common concern among apartment dwellers. Many people are gone for long stretches of time for work or vacations, leaving their homes empty. Many apartment doors and windows can be easily jimmied. Renter’s insurance provides the peace of mind of knowing stolen items can be replaced.

According to protectyourhome.com, there were 365,000 reported fires in the United States in 2015. These fires resulted in 2,650 deaths and nearly 7B worth of direct property damage. In many of these cases, residents lost all of their property and were left homeless, unless they had renter’s insurance. In cases where fires destroy homes, renter’s insurance pays for temporary hotel lodgings and replacement of all lost property. This gives the insured a secure place to stay until he or she can replace lost property and move into a new home.

Renter’s insurance also protects the insured from liability for damages he or she causes. For instance, if you caused a fire that spread to another unit and destroyed a neighbor’s property, you could be held responsible for that damage. In that case, renter’s insurance would cover your liability.

 

As far as insurance coverage goes, renter’s insurance is one of the most affordable and comprehensive. Residents in all types of rentals are eligible, including apartments, houses, condos, and mobile homes. With the high number of fires and burglaries, rental insurance is indispensable.