Do I Really Need Renter’s Insurance?

Should I Get Renter’s Insurance?

You may have been given the advice that renter’s insurance is important. However, you may be unsure just what it is and if it’s really necessary. Let’s try to clear up the uncertainty and take a look at what this type of insurance typically covers and whether you really need it. Keep reading to learn more.

About Insurance for Renters

You may think that anything that happens to your apartment or rental unit should be covered by your landlord’s insurance, but that’s just not true. It is imperative that the property owner obtain insurance. This policy only covers the dwelling itself, not what is inside. That means your possessions don’t fall under the policy in the event of a natural disaster or structural mishap. Even further, theft or damage caused within your specific unit won’t be taken care of, either. That’s why you need your own policy as a renter, so that you don’t have to pay out of pocket to restore your possessions. Not to mention any issues you cause through unintentional mistakes. There’s coverage for that, too.

How This Insurance Can Help

It’s far easier to make a monthly payment toward your insurance policy than to come up with the money to replace your stuff, or worse, to cover yourself in the event of a liability lawsuit should you be blamed for causing damage to someone else’s property. Insurance for renters provides coverage in three main categories. These are personal property, liability and loss of use.

Personal property insurance covers your stuff in the event of an event that is out of your control such as fire, theft, power surge or water damage. Unfortunately, there are some natural disasters that most policies won’t touch like flood, mudslides, earthquakes and nuclear incidents. Loss of use insurance is meant to take care of expenses should you lose the ability to inhabit your home. Things like food, lodging and incidentals are covered. Liability insurance is important in case something you do causes damage to your abode or the property of others. This type of insurance can save you thousands of dollars or more.

Other Considerations

A professional insurance agent can advise you on specifics such as how much coverage you need. In addition, you may wish to obtain particular types of policies to supplement your renter’s insurance if you live in an area that’s prone to flooding or other specific natural disasters. Don’t forget to pay attention to coverage limits. If you have something of high value like an engagement ring or top-of-the-line computer, you may need to get a separate policy to cover such an expensive item. Another suggestion is to take some photographs and video of your home and your belongings. This will help tremendously during the replacement process.

Related Resource: 10 Great Ways to Save on Renter’s Insurance

Bottom line, this type of insurance is relatively inexpensive. Paying a small fee each month is well worth the peace of mind it can bring, along with the time, money and hassle it can save you in the future. Renter’s insurance is definitely something you should consider getting.