Do I need insurance even if I'm not a homeowner?
There are different types of renters. Being a renter does not immune you from disasters that can happen unexpectedly in your rental living unit, whether it’s a studio, an apartment, a one-bedroom house, or a luxury home. And it also doesn’t exclude you from the responsibility of paying damages should an accident happen, nor exclude you from the need of replacing personal belongings in case of a burglary.
So while landlords have coverage that will protect the actual physical property, they will not be liable for accidents you yourself cause, nor cover any of your personal belongings. So yes, you do need insurance: renters insurance.
Renters are people too
Landlords will only have coverage for damages done on the physical property of the building or house. This means that renters’ belongings inside the residence are unprotected. This also means that the renter will not have liability protection like homeowners do. Having renters insurance fixes that. It protects you from having to replace damaged or stolen items, and it covers situations you may be liable for with your own money. So even if you aren’t a homeowner, you can have the same type of coverage as a renter.
Renters Insurance Covers:
Personal Property
Most standard renters insurance policies offer protection for personal belongings in case of water damage, fire, burglary, and other listed events. Keep in mind that like most homeowners policies, most rental insurance policies do not cover damages caused by floods, earthquakes, mudslides, or nuclear hazards. Those coverages can be added onto your policy, and your insurance agent will likely propose the add-ons if you live near a fault line, flood zone, or catastrophe-prone area.
It is important to note that if you have any items of significant importance, an engagement ring or rare collectibles, you may need to consider purchasing additional coverage known as a “personal articles” policy as standard renters insurance will not cover those specialized items.
Loss of Use
If a tree from next door crashes into your roof and causes you to vacate your home, any expenses you incur from being displaced from your home—hotel room, food, etc— will be covered by loss of use.
Liability
Liability covers bodily injury and property damage caused by negligence. For example, if you pet causes your neighbor an allergic reaction, liability coverage will pay for the necessary medication.
How much renters insurance coverage do I need?
Most landlords will require their tenants to have a minimum of 100K in liability coverage, but it all depends on the type of rental property and the landlord. If your landlord doesn’t require insurance, you should talk to an insurance agent to determine how much coverage you need.
