Do We Need Renters Insurance?

 

We often get the question, “Do I really need renter’s insurance?” And Dave’s answer will always be Yes, unless you have the financial means to replace all of your personal items – including your television, furniture, clothing and more – in the event of a major catastrophic loss. If not, then you’re strongly advised to carry renter’s insurance. Without it, you could be stuck scrambling to replace personal items if something were to happen to the home or apartment you’re renting. Even if you do have the funds to replace items in the event of a fire, burglary or other catastrophic event, renter’s insurance is an affordable option to protect yourself. Before you purchase a renter’s insurance policy, take some time to understand how it works and the benefits of renter’s insurance.

Renter’s policies are very similar to the coverage you might expect from a homeowner’s policy, with the biggest difference being building coverage. Renter’s policies cover the same exposures as a homeowner’s policy, including fire, lightning, theft, windstorms and other catastrophic events. To determine the appropriate amount of coverage for your renter’s policy, you will need to place a value on the cost of replacing all your personal items. It’s generally a good idea to pad these numbers a little bit, since your policy pays to replace up to the limit you purchase. Costly items like jewelry, firearms and art require a separate schedule to protect these items. Once you’ve determined the right amount of coverage based on your personal items, don’t forget to opt in for Personal Liability Protection. Personal Liability Protection covers you for bodily injury or property damage caused by a third party at your rental home or apartment. This is an important add-on to renter’s insurance, as it protects your personal assets from lawsuits that could arise from the rental of the property.