Renter’s Insurance: Why You Need It

So you’re renting a house or condominium, and think the owner of the property has insurance, why would you need any?

The homeowner’s property insurance policy that covers the physical dwelling you live in does not cover your possessions inside of the building.  A renter’s insurance policy (also known as a tenant’s policy) provides protection for your personal property, such as furniture or electronic equipment, in case of perils like fire, theft or wind damage from a hurricane.

Renter’s insurance provides liability protection.  Unintentional bodily injury or property damage that you cause to others could be as financially damaging to you as a fire in your apartment.  Liability protection against accidental occurrences (such as a visitor slipping on your wet kitchen floor and breaking an arm) comes standard with renter’s insurance policies.  Some renter’s insurance policies will even include legal defense costs, should you need legal representation to defend you due to a liability claim.

Renter’s insurance will also cover medical payments, including medical expenses for non-residents.

Compared to what you could stand to lose in the event of a serious loss, renter’s insurance is cheap.  Check online, or check your Yellow Pages.  Most insurance companies offer renter’s insurance, and you’d be playing Russian Roulette with your finances by NOT having it.