If you rent your home and believe that insurance is only for homeowners, you might want to reconsider. The truth is that renters can benefit from insurance just as much as a homeowner. There are a few situations in which your landlord's insurance can benefit you, but for the most part, you'll need your own. Here are some of the reasons why failing to buy renter's insurance is a risky move.
#1 - The Landlord's Insurance Only Covers the Structure
Assume for a moment that you live in an apartment building owned by a large company. Then, assume that the apartment building catches fire, and your apartment is a total loss. The company that owns the building - the landlord, if you will - carries insurance, but that insurance only covers the structure. This means that the company will get reimbursed to repair or rebuild the structure, but your personal effects that were destroyed in the fire are not covered.
What's more, if you have a friend over, and that friend is injured while he or she is in your apartment, you may be responsible for paying the damages. This is true even if the injury was caused by something that is the landlord's responsibility, such as a leaky water heater or a shorted appliance.
#2 - Your Property Is Valuable
Everything that belongs to you - including things like jewelry, appliances, electronics, and other valuable items - is your responsibility. Your landlord's insurance policy won't cover these things, so it's up to you to purchase that coverage. Imagine losing everything you own due to a fire, tornado, or other disaster, and having no way to recoup those losses. That's exactly what might happen if you fail to buy insurance.
The best way to purchase a policy that covers your needs is to have all of your possessions appraised and create a portfolio. It's even better if you can take photographs of items that are especially valuable, which may include expensive electronics, furniture, and antiques. Then, you can decide how much coverage you need and pick a policy that works for your budget.
#3 - Renter's Insurance is Inexpensive
If you're putting off buying a renter's insurance policy because you think you can't afford it, you might be surprised at just how inexpensive some of these policies truly are. Most renters pay between $20 and $30 a month for their coverage according to national averages. That's because unlike homeowner's insurance policies that must cover everything, including the structure itself and all liability for injury, your landlord's policy already covers the structure, and his or her policy may also cover injuries that occur in your building outside of your apartment. You'll only need to cover your possessions and some potential injuries that could occur inside of your apartment.
Renter's insurance is designed to cover everything that your landlord's insurance does not, including everything you own and any injuries that may occur inside of your rented space. It's incredibly inexpensive, so it's a fantastic investment that no renter should ever go without.
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