When a person buys a home, homeowners’ insurance is a given. However, when a person rents a condo, apartment, duplex or a house, he or she may forego renters insurance. Some people believe that renters insurance is unnecessary. They see it as optional coverage.
Why Is Renters Insurance Necessary?
Most renters cannot afford to purchase all of their belongings all over again. If you were to lose everything in a fire, your landlord’s policy might pay for the building, but you have to pay for all of your belongings. Likewise, if there is any property damage or if someone is hurt on your property, you could be held liable. Most people cannot afford the high cost of legal fees or settlement costs.
What Does Renters Insurance Cover?
Renters insurance protects you in case someone files a lawsuit against you. For instance, if someone is injured on your property, the insurance may pay legal fees or settlement costs. If your property suffers damage due to vandalism, fire, water or some other disaster, the insurance policy may pay for the damages.
Renters insurance policies should not be considered optional. If you had to pay the cost to replace all of your personal items, it could be devastating. Most people cannot afford to replace all of their belongings, much less pay legal fees for liability claims.