Reasons You Should Have Renters Insurance

When you’re renting a house or an apartment, it’s a common misconception to think that the landlord’s insurance will cover you as well. The landlord’s insurance policy is designed to protect the landlord’s financial risks, and those risks are very different from your financial risks.

You need insurance for your belongings

The landlord’s insurance policy covers the building structure, including fixtures like countertops, carpeting, and plumbing, as well as providing a small amount of coverage for personal items owned by the landlord and stored on the premises. Your belongings, however, aren’t covered by the landlord’s insurance policy at all. If you look around the space you’re renting, it’s likely that you’ll see tens of thousands of dollars’ worth of things you own, none of which are insured by the landlord’s insurance policy. In the event of a fire, water damage, or many other types of risks, your renter’s insurance policy can help you repair or replace your personal belongings that become damaged in a covered claim.

You need insurance for personal liability

Your landlord’s insurance policy only covers liability that’s attributed to your landlord. If someone is injured on the property, but you are liable, your landlord’s insurance policy can’t protect you. However, a renters insurance policy can provide personal liability coverage in an amount that you choose. Accidents can happen even to careful people, and sometimes accidents result in costly lawsuits. The personal liability coverage included with your renter’s insurance policy can help protect you from liability judgments that can affect your finances for years to come.

You may earn a discount

It isn’t uncommon for insurers to offer additional discounts for bundling renters insurance with auto insurance. Reach out to your broker to ask if any additional discounts are available and which coverages you might need to be well insured. In many cases, the additional discounts available through bundling policies with one insurer can significantly reduce the cost of your renter’s insurance policy or other insurance policies.