Should I Have Renters Insurance?

Homeowners are generally required to have basic insurance, and many purchase additional homeowners insurance to protect themselves against lawsuits should someone get injured on their property and to protect their physical property in the home should it be vandalized or stolen. Renters may not always know that they also can purchase renters insurance, and that in most cases, they themselves are liable for damages if someone gets hurt on their property. A landlord is generally liable for physical injury to a building caused by disasters, but is usually under no obligation to replace the property of the renter.

Renters may live in homes, apartments, duplexes, condos or townhouses. In particular, those people living in homes with shared walls can’t depend merely on themselves to protect their home from dangers. If you happen to live next door to people running an illegal meth lab, or who merely forget to blow out their candles at night, you’re not necessarily going to know this, and your home and property aren’t always necessarily safe. Further, an apartment or condo is just as likely to be broken into as a house, and disasters can occur anywhere. You can only depend so much on your own care of your property, so purchasing renters insurance can be an excellent idea.

There are a few times when renters insurance may not be necessary to cover losses of property or injury in a home. If a landlord is aware of an unsafe situation and fails to repair it in a timely manner, causing injury or property loss to the renter, the landlord is usually liable. Yet much of the property loss or injury caused to a renter does not hinge on the landlord’s neglect. So in most cases it makes sense to have renters insurance, unless you have the ready cash to replace items lost through disaster or theft. Some landlords may even require renters to purchase insurance, but most leave this optional.

Renters insurance varies in price and what it will cover. There are a few questions you should ask before making a purchase. First, be certain to ask whether your insurance will cover replacement cost of items or merely give you money comparable to the item’s current worth. It can make sense to pay a little more for full replacement cost, since much of your property, especially things like clothing, television and computers will devalue over time.

If you have comprehensive coverage for your automobile, it is also important to find out whether you are paying double coverage to replace your vehicle. In most cases it isn’t necessary to pay extra for this coverage. Another thing you don’t need double coverage for is injury to yourself or family on the property. If you have health insurance and sprain your ankle on the stairs, your health insurance policy will cover this. Instead look for insurance that covers visitors to your home.

Renters insurance can be purchased from a variety of sources. Sometimes it saves money to purchase it from the same broker or company that insures your car. Average renters insurance for basic replacement of property may cost between 10-20 US dollars (USD) a month. If you’re using a company that you’re not familiar with, be sure to check their records to assure you’ll be compensated should you experience losses. This slight cost may be well worth it, and renters insurance is becoming an increasingly popular form of insurance.