How Important is it to Have Renters Insurance?

How Important is it to Have Renters Insurance?

While most people agree that medical, home or auto insurance is necessary to properly cover you in case of an accident or emergency circumstance, many renters do not purchase insurance to protect them while they are a tenant. Often, people make the mistake of incorrectly assuming that their landlord’s insurance policy will cover them should an unfortunate circumstance occur. While it’s true that your landlord will have insurance, it will only cover the building and the landlord’s personal liability.

In the article below, we will discuss just how important it is to have renters insurance to protect yourself.

Coverage for Your Possessions

Many renters make the mistake of assuming that they don’t actually own that much and therefore don’t need to ensure their possessions. If this sounds like you, take a walk throughout each room in your apartment and take an inventory of your belongings. You don’t need to have fancy diamonds or expensive art to need tenant insurance. Furniture, laptops, desktops, small and large appliances, TVs, stereo systems, clothing, kitchenware and everything else you own quickly add up in value. Chances are if your apartment was subject to fire or theft, you probably wouldn’t able to afford to replace everything you own. Having a renters insurance policy will ensure that you have the coverage you need and give you peace of mind.

The Importance of Liability Coverage

Third party liability insurance is included with your renters insurance policy will protect you from accidents that may cause damage to someone else’s property or injure them. For example, if someone fell and broke their arm in your apartment, third party liability insurance would help protect you against liability claims and lawsuits for accidental bodily injury. Furthermore, it will also cover accidents or damage caused by your pets, so if your dog bit someone, your liability coverage would help cover the individual’s medical expenses.

Compensation for Vacating Your Apartment

If your apartment sustained major damage and you needed to leave while it was being repaired, your landlord is not required to pay your living expenses in the interim. Whether or not the damage was caused by vandalism, theft or fire, if you cannot continue to live in your rented dwelling while repairs are being made, costs can quickly add up. With renters insurance, your financial burden will be reduced if you need to stay in a hotel or short-term rental as well as your lifestyle maintained – for example, if your apartment had a gym your insurance may cover the cost of a temporary local gym membership.

Coverage for Upgrades

If you have paid out of pocket for any upgrades to your apartment such as installing shelving or a closet organizer, your landlord’s insurance will not cover your costs in the event of damage. In order to be covered for any improvements or upgrades that you have made, you need to have a renters insurance policy.

Not only is renters insurance vitally important, it is affordable with many flexible options available to suit your needs and lifestyle. For the reasons above, tenants should insure themselves against loss and gain peace of mind that their possessions (as well as themselves) are protected.

To find out more about how you can save on your renters insurance policy, contact an experienced professional at Bow Valley Insurance for a free, no-obligation quote.