But chances are you have a fair number of essential belongings that you can’t live without and that can cost a lot to replace.įor example, what would you do if a thief swiped your laptop? Or a fire destroyed your furniture and clothes? Would you be able to afford new items at a moment’s notice? Or you might think you don’t own anything of significant value. You Have Way More Stuff Than You ThinkĪs a renter, one common mistake you might make is underestimating how much you actually own. You’ll need your own renters insurance policy.ħ Reasons You Need Renters Insurance 1. But that’s typically not the case if you live in an off-campus apartment. If you live in a campus dorm, your personal belongings are likely covered under your parents homeowners insurance policy. Renters insurance can also help with expenses like hotel bills and restaurant meals while your apartment is being repaired. If a fire destroys your personal property, renters insurance can pay to repair or replace the items. If you don’t have much money set aside in an emergency fund, renters insurance can be a key way to stay afloat if a problem like a fire damages your apartment. There were nearly 18,000 dog bite claims in that year alone. Consider the average dog bite home insurance claim was $49,025 in 2021, according to the Insurance Information Institute and State Farm. Liability insurance pays for medical expenses if your dog bites someone. It also pays for your legal costs if you’re sued because of the accident. Liability insurance pays for accidental injuries and property damage you cause to others, such as a guest who is injured while visiting your apartment or if you knock an errant golf ball through someone’s window. When you have the right amount of liability insurance, you won’t have to gut your savings or sell off assets to pay for a lawsuit against you. Someone with financial assets who can be a lawsuit target.Tenants who may need renters insurance include: Includes medical payments coverage that will pay for minor injuries to guests, no matter who is at fault for the accident.Liability insurance also pays for your legal defense if you’re sued for the incident. Includes liability coverage, which pays for property damage and injuries you accidentally cause to others.Includes additional living expenses coverage that can help pay for temporary housing if your unit is damaged due to a problem covered by your policy.Covers your personal items if they are vandalized or stolen.Covers your personal property like furniture, electronics and clothes if your rental unit catches fire or is damaged by another issue covered by your policy.It covers a wide range of problems such as stolen items and accidental injuries to others. Renters insurance costs only about $14 a month on average for $15,000 worth of personal property coverage. Renters insurance can be a wise financial decision even if it’s not required. Should I Buy Renters Insurance When It’s Optional? Renters insurance includes liability coverage for the renter, which may reduce the risk of a lawsuit against the landlord.Additional living expenses coverage is included with renters insurance and helps pay for temporary housing while the rental unit is being repaired if it’s damaged due to a problem covered by your policy, such as a fire.A landlord may see renters insurance as proof that the tenant is a lower risk.Renters with insurance may be less apt to sue a landlord to try to get money for damaged items. Renters insurance covers damaged and stolen personal property.Why would landlords demand renters insurance? Typical reasons are: Landlord insurance doesn’t cover damage to your personal items and it doesn’t cover accidental injuries or property damage to others that you are liable for. Property owners have landlord insurance, which covers the owner or management company for property and liability issues related to the structure and common areas, such as sidewalks and stairways. Renters insurance isn’t required by law, but a landlord may require you have a renters insurance policy as part of your lease agreement.
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