Why Do I Need Renter’s Insurance?
{April 1, 2013}—Many tenants question the need for renter’s insurance. And while it is true that you may rent for years and never need your insurance, it is vital that you are prepared for the worst-case scenario. This may also be the case with any insurance policy (such as auto insurance), but the peace of mind alone is worth the cost, let alone if an unfortunate disaster or accident were to occur. Here are some basic facts about renter’s insurance, provided by State Farm®:
First, renter’s insurance is NOT expensive! Many policies cost less than $200 per year, depending on the about of coverage required or needed. Equally important, tenants are NOT covered in their landlord’s insurance policy. For example, while a landlord’s policy may cover damage to the building during severe weather, your belongings damaged during the same event are NOT covered under his policy. According to State Farm® most tenants also grossly underestimate the value of their belongings; even if you “don’t own much” the cost of replacing your basic necessities can add up quickly.
It is also vital for tenants to recognize the need for personal liability insurance. Again, a landlord’s policy is NOT going to cover the tenant’s liability for damages to the property. For example, did you know that if you leave your stove on and a fire starts you, NOT your landlord, are responsible for the damage? Without insurance, the cost of the damages and repairs comes out of the tenant’s pocket. Other personal liability, such as if someone trips and falls in the residence and files a lawsuit, would also be covered under renter's insurance, but NOT the landlord's policy.
The above information and further details about coverage and renter’s policies can be provided through State Farm’s® website:
