Renter’s insurance is a type of insurance designed for people who rent, as opposed to own, their living space. It’s also known as Contents insurance. It covers items like TV’s, laptops, couches, and many others; in case items are damaged (in a fire for example) and stolen.
Renter’s insurance also covers liability; for example, injury. Injury covers you if someone else gets hurt in your rented property or if someone else’s property is damaged in your possession. It tends to be easier on the pocket as the items that it covers are affordable; however, there are other factors that influence your premiums such as the location of your rental property and which insurer you’re insured with.
Some people may think that they don’t need to take out renter’s insurance because their landlord has told them that the apartment is insured. Unfortunately, this is not the case; your landlord’s insurance only covers the apartment itself, but it does not cover the property inside the apartment that belongs to you. Therefore, it is very important to always have some sort of safety net because a natural disaster or burglary can happen to anyone.
On the other hand, some may feel that they don’t own enough property to take out renter’s insurance. However, the liability component is still very important because you might be held liable for the damage to someone else’s property which you might not be able to pay for. The solution for you would be to take out a cheaper policy that will only cover you for the liability component.
Furthermore, renter’s insurance covers your living expenses should you find yourself having to move to another place due to damage to your current property. However, not all policies include this benefit, therefore, you should confirm this with your broker or your agent.
Lastly, if you purchase renter’s insurance and you decide to move to another place for rent; you will not lose your current policy. You will be able to update your information and transfer your policy to cover you at your new address.
Life is unpredictable but it is important to have the peace of mind that should you fall victim to crime or a natural disaster, then your belongings are insured. Falling victim to any of these events is traumatic enough without having to worry about the money you will need to start afresh.