do you really need the extra insurance?

Protecting Yourself With Renter's Insurance

by Rick Mcguinness

If you rent your apartment or house, having insurance that is designed to address the particular needs of renters can be an important investment to make. However, many renters will often have a misguided understanding of this type of protection.  

Myth: Renter's Insurance Is Only Worth Buying If You Have Very Valuable Items

Individuals that assume they only need to invest in renter's insurance if they own valuable possessions that they are keeping in their unit. However, renter's insurance will have protections that extend beyond covering the value of your personal possessions. In fact, this type of insurance can be invaluable for protecting you against property damage and accidents. A common example of this type of protection can be your unit flooding and causing damage to the unit beneath yours. Without renter's insurance, you may be personally liable for the damages that the person living below you suffered, and this could prove to be extremely expensive.

Myth: Renter's Insurance Will Be Included In Your Lease

Individuals may assume that their lease will include renter's insurance coverage for their unit. This may be the case with some apartment complexes and landlords, but this is usually a necessary purchase for renters to make. Additionally, if your apartment provides renter's insurance, it can still be worth the expense of buying a policy as it may offer additional coverage on top of the protection that comes with your lease's included insurance.

Myth: Renter's Insurance Coverage Is Extremely Expensive

While it may be easy to understand the benefits of carrying renter's insurance coverage, individuals may fail to realize that this can be among the most affordable types of coverage that a person can carry. In many instances, a renter's insurance policy may only cost a few dollars a month. Additionally, individuals can choose more expensive policies that will offer far superior protection. For example, this may include coverage that provides housing expenses in the event that your apartment was to become unlivable due to damage.

Purchasing a renter's insurance policy can be an investment that provides you with ample protection against some of the risks that renters will often have to face while they are living in their units. However, you may not choose to carry this type of protection if you have a poor understanding of the protections and benefits that a renter's insurance policy will be able to provide you during the time that you live in your unit.