Why Renters Insurance?

by Frank Graham 

For so many reasons, you will want to have insurance on your apartment or rented home. If you are landlord, you certainly want to request or require that your clients carry it. Here's why renters insurance is so important.

You looked and looked and found a place you treasure as a rental in the vibrant, beautifully old and elegant, but young and hip, neighborhood. You fit right in. You know that your landlord has to insure the property, but did you also know that their insurance only covers the business, not you really, nor your property. If you did experience a loss, in the same way a homeowner, due to a fire, wind damage, or some other calamity, could suffer, you would need coverage to pay for all that happened to your property inside. Your property is generally not covered by the landlord's policy.

For a landlord, a renter with coverage is more stable, more reliable, less likely to cause a problem regarding your property -- and won't be in a bind and looking for a way out when something negative does happen.

Much like the driver of a car, a person who rents an apartment or a home will almost certainly be liable for expenses if they cause, or are found to have caused, an accident. You left a cigarette unattended, an iron is left on when you're on your way to work, or you have a party and a guest takes a bad fall because of something you, the renter, did or didn't do. Do you think your landlord is going to let you walk away? Guess again.

Another thing to consider is, where will you, the renter, live when the apartment is being reconstructed? Who will pay for that? Even worse, you cause the fire that burns down not only your apartment, but the two adjoining it. In these cases, you have been negligent for an accident that occurred in your home. It doesn't happen to everybody. It doesn't happen that often, but it does happen. And when it happens, it can ruin a person's financial future.

A good policy and agent will make certain that your personal property -- your stereo, furniture, books, electronics, and more -- are covered right in many situations. Not every policy is the same, but the state does have certain standards. That being said, it is best to sit down with an agent face to face and let them know what's important to you and what assets you want to protect.