Renter’s Insurance: Should You Have It?


Do you have renter’s insurance? If you’re a renter who doesn’t have this basic type of insurance, you could be putting yourself at risk. Without renters insurance, you could be facing potential financial disaster – and all very unexpectedly. Here’s what you need to know. 

What Renter’s Insurance Covers (and Doesn’t Cover)

Renter’s insurance is to renters what homeowners insurance is to homeowners: it’s an insurance policy that protects your belongings if a covered event occurs. For example, your renter’s insurance policy may cover damages that occur as the result of a fire in your apartment. In this case, you would pay a deductible and have items damaged in a fire replaced.

What it Includes

You should read your insurance policy to verify this, but most policies cover damage to your personal property if it is damaged or stolen during a covered event. Most policies also cover the cost of temporary living expenses if your apartment becomes uninhabitable, and medical and legal bills if you are found liable for damaging someone else’s property or causing them harm. 

What it Doesn’t Include

Renter’s insurance doesn’t cover damage to the structure where you live. The structure where you live should be covered by your landlord or property owner’s insurance policy. 

Do I Need Renter’s Insurance?

Your landlord may require you to have renter’s insurance. However, even if this type of insurance is not required, it’s still a smart policy to get. Most renter’s insurance policies are very inexpensive, and in the event that something were to happen to your personal property, you’d be glad you had renter’s insurance. You never know when a covered event is going to take place. 

How Do I Find the Best Fit?

The best way to find a policy that’s good for you is to shop around. Although renter’s insurance is fairly inexpensive anyway, shopping around can save you money. If you’re on a budget, this could mean the difference between finding renters insurance and not, so it’s worth it! Ways to save include:

  • Get renters insurance from the same company that you buy auto insurance from.
  • Install smoke detectors or a security system. 
  • Set up automatic payments.
  • Opt for the higher deductible.
  • Find out if you qualify for a discount (either because of your profession or because of your veteran status).

In General, It Is Worth It!

You’ll feel more protected knowing you have renters insurance – and that’s cause you’ll be more protected. Get a policy that will protect you and your personal property. Read your policy before signing up. You’ll be glad you did, if a covered event happens. …if you never have to use your renters insurance ever, you’re still unlikely to notice the nominal cost every month. Either way, it’s a good investment. 

About the Author: Kathryn Elwell grew up in the Midwest. She has experience in management and human resources, and has been writing on these topics and more for 12 years.

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