Do I Really Need Renters Insurance?

Do I need insurance? I’m just renting, I don’t own a home. I hear this all the time. If anything happens to the place I’m renting, the landlord will cover my losses. This is another one. While you don’t need to have renters insurance. It makes sense to protect you and and your possessions.  Lets clear up what renters insurance is. This type of insurance provides coverage for your lost, damaged or stolen property along with liability for injuries to others that are deemed your fault. It can also pay for living arrangements in the event your home is damaged or becomes uninhabitable.  Now that we know what renters insurance is. I will explain why its a good idea to have for a low cost.

Renters insurance is important because your possessions are not protected by the landlord’s policy. The landlord’s policy covers damage to the building not your stuff. The liability portion of the policy will protect you if somebody is hurt in your home and files a lawsuit. The landlord’s policy will not cover you if it’s your fault. So you can see a renters policy will act almost the same as a homeowners insurance policy. Your possessions can be coverd on an actual cash value or replacement cost.

There are certain things that the policy will and will not cover. It will cover your personal items from fire, theft, water damage. The policy will pay you the amount of coverage on your policy less your deductible. Renters insurance will typically cover belongings  in your car, but not damage to the car. Damage to the car would be covered under your auto policy.  Will the policy cover my items in a storage unit? It all depends on the policy specifics. Some have limited coverage or you can buy coverage from the storage facility. Animal liability is another peril that typically would be covered but depending on the policy specifics  and type of dog it might not be. Renters insurance does not cover flooding, bed bugs, or maintenance items. If your TV breaks from being old it will not be eligible for coverage but if the TV is damaged due to a covered peril you have protection.

So the next question is how much does it cost or is it expensive?  Your typical renters insurance policy is only a few hundred dollars a year. They mostly start out around $150 a year and up depending on the amount of coverage you require. So for about $15 a month you have a policy that will protect you and your possessions. It makes sense to have this coverage as it helps pay for your belongings, and liability for a very affordable yearly premium. If you contact us we can go over all the specifics of a renters policy and the cost.

Should I have renters insurance? The answer is yes.