The Importance Of Renter's Insurance

By Shannon Towsent


If you are a homeowner, you are required to insure your house and belongings. However, renters are often not subject to a similar requirement. When you are renting a house or apartment, getting a renter's insurance policy is an excellent idea though. Renters don't often think they should have insurance.

Basics of Renter's Insurance

Renter's insurance is there to protect the renter and their belongings. A coverage amount and a deductible amount will need to be selected by you. The deductible is really what you are comfortable with. The higher the deductible, the lower the premium.

Don't be surprised that your landlord's insurance policy doesn't cover you. But if there are major unexpected damages or losses, renters need to be financially protected. It is not expensive to get tenant's insurance. It is a modest amount to protect all the possessions in your rented home, not to mention the liability in case someone is injured in your home.

Many renters choose not to take out tenant's insurance because they underestimate the value of their personal belongings. To estimate what your belongings are worth, conduct a home inventory. Estimate what it would cost to replace everything on a list of all your goods, including clothing and furniture.

Liability Coverage, Too

Even though you don't own the property, you are responsible for ensuring that any visitors or guests are properly protected. They could sue you for damages if they are injured by an animal or a fall. If you have a good renter's policy, you will have help covering the costs of litigation.

It might be a surprise to you that renters are legally responsible for any damage they cause to their building, and to others living in or visiting it. Liability and contents coverage are the primary two types of coverage offered by tenant's insurance policies, but they can vary from one insurance company to the next. You are protected by liability coverage in the event that you or your guests damage the building, or if someone sues for damages after being injured in your home. If your belongings are lost or damaged, contents coverage enables you to replace or repair them.

Evidently, the benefits of tenant's insurance mean it is essential for anyone renting a house or apartment. It can cost between $125 and $200 a year for a basic tenant's insurance package for an apartment in a building. The risk increases if you add additional coverage for items of higher value, or if the space also is used for business purposes. However, when you consider what it would cost to replace everything, buying insurance coverage is a smart investment that won't break the bank.




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