MoneyTalk

If you rent an apartment, house, condo or any other home, you need renters’ insurance coverage. This type of insurance protects you in several ways:

• Covers your possessions against theft and damage. If someone breaks into your home and steals your possessions or if a fire leaves you without anything, renters insurance covers the cost of your possessions, so you can start over. Whether it’s a broken water pipe or thief, you’re covered, and your possessions can be repaired or replaced.
• Covers some liability. If someone is visiting your home and is bitten by your dog or trips and falls on your steps, renters insurance can cover the medical bills and liability costs. Without coverage, you are responsible for paying these costs yourself.
• Protects you against “loss of use.” If you cannot return to your home because it has been affected by fire or is uninhabitable, renters insurance can help pay for another place to stay. Typically, renters’ insurance does not cover a loss of use (additional living expenses) for floods damage.

Do You Need Renters Insurance?

Your landlord likely has insurance to protect common areas and their investment, but you need insurance, too. Renters insurance for apartments is relatively easy to apply for, and if you already have car insurance or another type of coverage, you may be able to get a deal by combining your policies with one provider.

If you don’t have renters insurance, you are responsible for any legal claim that happens because someone has been injured in your apartment.  You will also be responsible for replacing everything in your apartment in the event of a fire, theft or other disasters. Unless you have tens of thousands of dollars in savings you’re willing to put toward starting over again, renters insurance is a smart investment.

Take a look at the possessions in your apartment, condo or other rentals. Chances are, your clothes, personal items, electronics and other possessions add up to thousands if not tens of thousands of dollars. If you suddenly had to move into a hotel because your apartment was destroyed and you had to start over by purchasing all of your possessions, it would cost you significant amounts of money. In contrast, renters insurance can be an affordable monthly cost that can protect you against this.

Have you ever needed renters insurance? What was your experience?