Do I Really Need Renters Insurance? | Understanding the Importance and Benefits

Some landlords will require renters insurance while others don’t, which can leave you wondering, “Do I really need renters insurance?”

A recent survey by NerdWallet revealed that 56% of renters do not have renters insurance. Many of them cite the cost of coverage as a hindrance, but renters insurance coverage can cost less than you expect — in fact, some tenants could pay next to nothing.

Why Do You Need Renters Insurance?

Protection for Personal Belongings

One of the primary reasons why many tenants do not get renters insurance is that they presume their landlord's policy covers their personal belongings. However, this is far from the truth. Landlord insurance covers the structure of the building and not the tenant's personal possessions. In the event of a disaster, such as fire or theft, a standard renters policy will cover the cost of replacing lost or damaged belongings, including TVs, electronics, shoes, clothes, and other personal items.

Value of Personal Possessions

Another reason why renters should consider getting insurance is that they may own more valuable items than they assume. To know what coverage they need, renters should take stock of their personal belongings and tally up their value. Most will be surprised by the amount of value in their possession and understand that having insurance is absolutely essential.

Liability Coverage

Renters insurance also provides coverage for liability, which is inclusive of the legal cost of paying for any third-party damages or injuries. If you accidentally cause damage to a neighbor's apartment or cause injury to someone, your renters insurance will cover the liability costs, including legal fees and payment of a settlement or judgment amount.

Coverage for Additional Living Expenses

In the event of a disaster, such as a fire, flooding, or other natural disasters that may force you out of your apartment, renters insurance can cover the cost of additional living expenses. Most policies provide coverage for a ‘loss of use’ or ‘additional living expense,’ which will cover hotel costs, restaurant meals, and other related expenses incurred when you are not in your apartment.

Financial Protection

Renters insurance can protect your finances as well. Rather than having to pay out of pocket in case of an accident, if your dog bites someone, or a guest gets hurt while at your apartment, your renters insurance policy will pay for their medical expenses, legal fees, and other damages. Furthermore, if you're saving for a down payment on a house, or you've worked hard to get out of debt and build an emergency fund, the last thing you need is to be paying out of pocket for an accident.

Coverage for Belongings Outside Home

Lastly, renters insurance can cover belongings even when they're not inside your home. For instance, if your laptop is stolen while you are at the café, you can still file a renters insurance claim to recover the cost of the items stolen. You may also have coverage for your belonging in a storage unit.

Get Affordable Renters Insurance

In conclusion, the cost of renters insurance is not a hindrance, and it is a worthy investment. The rewards of securing your personal items and financial future far outweighs the cost of the insurance premium. By bundling your renters policy with your auto insurance policy, you may save even more as many carriers offer multi-policy discounts. While renters insurance is not always required by your landlord, it is in your best interest to purchase renters insurance, as you'll be able to rest easy knowing your personal belongings and finances are protected.

When you're ready to save, contact Family Union Insurance and we’ll shop for the best rates for you!