WEDNESDAY, MAY 31, 2023
You might rent your home, and while searching for the right place might have faced the question of whether you need to buy renters insurance. You might not know why you need this policy since you do not own the home you live in.
In fact, there are many reasons to buy renters insurance. They all center around the fact that these policies offer critical financial aid to you in case of unexpected, unavoidable accidents in your home. They can often be a lifeline that will save you from costly, even unsustainable recovery costs. Let’s take a closer look at four primary reasons you need this coverage.
Your Landlord’s Insurance Will Not Cover You
Your landlord might own the rental home, and while they will have to protect you while you live there, these responsibilities usually do not include insuring you. Therefore, while they might have their own insurance, it will not cover your possessions or the liabilities that you bring to the property.
Coverage Might Be Required
Even though your landlord does not necessarily have to provide you with insurance protection, they can still require you to procure this coverage yourself. This helps them make sure that you have the means to take responsibility for any damage done to your own property, or any harm done to others that is your fault. Renters insurance is a way that they can make sure you are not a liability to them.
You Will Protect Your Possessions in the Home
You might not own the home you live in, but you do own the possessions inside. If these get damaged in a fire, break-in or other hazard like severe weather, then your renters insurance can help you replace these belongings. You can often tailor your policy limits and deductibles to your advantage. You can also add special policy endorsements to your plan to cover high-value items or to pay for items based on their replacement cost values.
You Can Take Responsibility for Your Mistakes
There is always a chance that you could make mistakes or simply not notice problems that wind up hurting someone else or damaging their property. As a result, you might have a legal requirement to repay them. Renters liability insurance will cover these expenses. This is a great policy to have because it can protect you if someone ever sues you because they believe that you are responsible for harm that they sustained. For example, if you accidentally cause a fire in your rental unit that spreads to another unit, then you can repay the other property owner for their property damage.
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