Credit Score 401
November 3, 2021

4 Reasons Why You Need Renters Insurance

If your landlord already has insurance on the property you rent from them, do you really need renters insurance for living on their property?   

The answer is "yes." Unfortunately, many renters assume their landlord's insurance covers any damages incurred while they're living there. However, the reality is that renters insurance is quite important. If anything goes wrong, it protects you regardless of how your landlord handles the issue.

Learn more about what renters insurance is and the four most important renters insurance benefits.

What, Exactly, Is Renters Insurance?

Renters insurance is a property insurance policy that covers a renters personal belongings, liabilities, and (in some cases), living expenses in case of a loss event within the property. Anyone who rents or sublets an apartment, condo, studio, single family home, loft, or townhouse can apply for renters insurance.

Some landlords may even require you have renters insurance before they'll rent their property to you.

How Can Renters Insurance Benefit You?

1. You Get Financial Assistance If Disaster Strikes 

Following a devastating fire, flood, or other issue, the last thing you want to do is worry about how you will pay for a place to sleep. Fortunately, if something goes horribly wrong and your renters home is unlivable, that's when your renters insurance comes into play. Insurance for renters typically covers the cost for hotel stays, food, and other living expenses when the unforeseen happens. 

This temporary assistance can take a huge weight off your mind if your home is destroyed, which makes it easier to remain comfortable while waiting on your landlord to repair the property. And, you won't have to dip into your savings or go into debt just because something went wrong at your apartment. 

In some cases, this assistance can even help with deposits or other expenses if you end up having to move to another place permanently.

2. Renters Insurance Pays to Replace Your Important Possessions 

One of the most important renters insurance benefits is that it covers all of your possessions. Typically, the property insurance that your landlord has will not pay for replacing a renters belongings. This means that if you do not have renters insurance and something happens to your property, you're on the hook for paying to replace it.

Having renters insurance ensures that if anything happens to your items, your insurance can give you the money you need to replace them. This coverage can apply to just about everything in your home, including pricey items like electronics, jewelry, or nice furniture.

Renters insurance can protect property destroyed due to common issues such as:

  • Fire
  • Flooding
  • Theft
  • Water damage
  • Storms

3. Renters Insurance Comes with Liability Coverage

Liability lawsuits might not be the first thing you think of when considering if you need renters insurance. However, they are surprisingly common and extremely expensive. Most people have a legal responsibility to provide a safe environment for guests and properly care for the property they are renting. If you fail in these duties, you can potentially be sued. 

Something like a guest slipping on your wooden floor, your dog biting a jogger, or a ball going through a window could set you back thousands of dollars. Renters insurance covers most liability claims that happen due to your actions while on the renters property. It can cover both legal costs and any court-ordered compensation, so you do not have to pay a lot of money out of pocket.

4. Renters Insurance Is Surprisingly Affordable 

Despite all the renters insurance benefits, most renters shy away from getting it because they assume it's going to be too pricey. However, renters insurance costs are generally far cheaper than homeowners insurance or even some auto insurance. Most people who get renters insurance only need to pay an average of about $15 per month – that's less than $200 per year.

Furthermore, most deductibles are low as well, and some renters insurance companies completely waive deductibles. To give you even more savings, many companies offer special discounts when you purchase multiple months of insurance at once.

For a fairly small price, you get protection and peace of mind all year long. If anything goes wrong in your renters property, your insurance will most likely cover the costs. Those who encounter a major issue end up saving thousands of dollars thanks to their renters insurance.

Ultimately, insurance for renters is easy to obtain and an important step in protecting your personal property and any unforeseen liabilities. Even if your landlord does not require you to get renters insurance, it is a good idea to go ahead and sign up for it.