Many a tenant has asked, “Is renters insurance necessary?” Several factors help determine the answer to that question. Learn what they are, then use DexKnows listings to find an agent who can provide additional information and quotes.
Does your landlord require renters insurance?
Many owners of rental property include in the lease a clause requiring renters insurance. They do this to protect their interests, though, not yours. For example, if a visitor to your home were to slip and fall, a renters insurance policy would not only help protect your personal assets in the case of a liability lawsuit but would also serve as a buffer between the injured party and the landlord’s homeowners insurance. Without renters insurance, the injured party could take his or her lawsuit directly to the property owner.
Also keep in mind that if your lease requires renters insurance, not having it would serve as cause for eviction.
Do your assets warrant renters insurance?
If your landlord does not require renters insurance, you still should consider purchasing it if you have anything of value. Do a quick tour of your home and mentally add up the value of various items. If you have more than $200 worth of assets, it makes sense to get a renters insurance policy, which can cost that amount or even less per year.
Do you live in an area where crime or weather is an issue?
If you still remain on the fence as to whether renters insurance counts as a necessity, consider where you live. Is crime an issue? Renters insurance will cover you in the case of theft or vandalism. Do you get severe weather? If the rental property were to flood, the landlord’s homeowners insurance would cover damage to the home but not your belongings. You would need renters insurance to replace any items damaged by water.
Cost factors for renters insurance
Just as car insurance varies in price by coverage, so does renters insurance. For example, you could cover personal property in your home or you could also cover personal property you have with you when traveling. You could purchase coverage for loss of use, too, giving you the money required to live elsewhere if your home becomes damaged and rendered uninhabitable. Additional coverage options exist for personal liability, as well.
To learn more about available renters insurance policies in your area and to receive quotes, contact an insurance agent. DexKnows listings can connect you with one.