If you rent your home don’t make the mistaken assumption that your landlord’s insurance will cover any potential losses you suffer, as it won’t. The landlord’s insurance will cover the structural side of the property but not your personal possessions. What renter’s insurance will provide you with is cover against fire and theft, plus a myriad of other things which could result in damage or loss to your belongings. Good policies also insure things such as cash and bicycles outside the property, and can effectively work as travel insurance for your possessions and cash.
Much of the provision included in the policies is unlikely to ever happen but is automatically included in the cost. Thus you will be covered if a tree falls into your home or a car drives through your wall. It will cover you for the more likely possibility of damage from leaking pipes and smoke damage. Those who live in apartment complexes will enjoy the security of knowing that when their negligent neighbor sets fire to their apartment, renter’s insurance will cover the costs involved if they need to move somewhere else whilst the damage is sorted.
Standard policies don’t cover everything though, but do have the option to add insurance for separate items such as expensive jewelry. This will raise the premium but it is foolish to leave your most expensive possessions uninsured. However if you rent in an area which is liable to suffer earthquakes or floods you are unlikely to find a policy to cover these eventualities.
When assessing the value of your goods for insurance cover you need to determine if you wish to have insurance to cover the replacement value of your goods or their actual value. The former is much more sensible as even your tatty old clothes will cost you more to buy new if they are all lost in a fire.
Another important reason to carry renters insurance is for the liability cover it brings. As Americans are so litigatious in nature you can expect to be held responsible if anyone in your home suffers an accident, and thus liable for their medical bills. In addition the accident prone victim may decide to sue you over their accident and in such an instance the renters insurance covers your legal bills.
Whilst it may appear to be a chore to source out renters insurance it is worth the effort as rented properties may simply not be as well maintained as a property of your own. The costs are not high and the benefit is peace of mind. A random event may occur which causes the loss or damage of your belongings but the insurance will provide the means to swiftly replace everything which does not carry sentimental value.