Whether you are renting an apartment, a duplex or a house, it’s wise to obtain a renters insurance policy. Not only are rental homes just as likely to sustain fire and theft losses and their owned counterparts, but tenants should protect their belongings and finances, too. A renters insurance can cover you in many ways. Take a look at just a few things you may have been getting wrong about renters insurance.
I pay rent so I don’t need to get renters coverage.
Even though you pay your landlord rent, it doesn’t mean that you are covered if an unexpected event occurs. The owner of the building is responsible for insuring the structure. That means if the house or apartment burns down, the landlord’s insurance would pay the cost to rebuild the property. However, their insurance will not pay for your destroyed personal property. In a case of loss, you either have renters insurance to replace your belongings or you pay out of your own pocket.
I don’t own much stuff so it’s not worth insuring.
Even if you don’t have a lot of belongings, take a moment to think about the value of belongings around you right now. Do you have a computer? TV? iPad? Clothes? Furniture? If you had to replace everything in your household at once, what would your total replacement cost be? Do you have enough money on hand to cover it all? A renters insurance policy can step in to help during these hard times.
My roommate has renters insurance so I don’t need it.
Some policies cover roommates, but most do not. Even if your roommate’s policy does, it’s a good idea to have your own policy. For starters, these policies have deductibles and limits on the dollars they pay out. Have you talked about splitting the deductible? What if your stuff is more expensive than your roommate’s stuff? If you’ve lost your belongings, you don’t want to be getting into a heated argument with the person you live with.