According to ABC News, only about one-third of Americans who rent their homes carry renter's insurance. Many think that they are covered by their landlord's insurance. However, that insurance only covers the structure, not your personal property. But, that's just one reason to carry renters' insurance.
Why you need renter's insurance
1. It's surprisingly affordable. Since the money that the insurance company will have to pay out to a renter compared to a homeowner is much less, the yearly premium for renters' insurance is also much less. The average policy is just $12 per month, although the exact amount will vary depending on your location, the amount of personal property you own and how much liability coverage you choose.
2. You never know when disaster will strike. Natural disasters, such as a fire, tornado or flood are not things that you can anticipate. Renter's insurance give you money to replace your property, such as your clothes and your furniture, if it is damaged in a covered disaster. Renter's insurance will also help you replace property that is stolen from your apartment or rental house.
3. Even renters can have liability issues. While your landlord's insurance helps protect him or her from costs associated with a lawsuit if someone should fall on the sidewalk outside the building or trip down the common stairs, you could be sued if someone is injured on your portion of the property, such as inside your living space. Most renter's insurance policies include protection against such occurrences.
4. You'll need somewhere to stay if your home is destroyed. Another lesser known benefit of renter's insurance is that it will help cover the costs associated with housing you and your family if your rental home is uninhabitable due to fire, flood or other disaster. Most policies will even cover meals and transportation up to set limits.
5. Your roommate's insurance won't cover you. Most renter's insurance policies are person (or family) specific. That means that even if your roommate has insurance, you won't receive any compensation if your possessions are damaged in a fire or other disaster or if they are stolen from inside your home.
If you think that you don't need renter's insurance because your landlord has insurance, think again. A disaster, such as a tornado or fire, could cause you to lose all of your possessions as well as your place to live. Renter's insurance can save you from having to worry about such events for only a few dollars each month. For more information, contact companies like Zimmer Insurance Group.