Who needs renter's insurance? If you are renting an apartment or house it is suggested. Let's say you and your boyfriend or girlfriend are renting a place together. Since you are not married or related then you will each need a renter's policy. If you are renting a place with a friend you will each need a renter's policy. Even if you are living with someone that owns their own place and you are not related to them, you will need your own renter's policy. Some homeowners can have an endorsement added to their home insurance to include you and your personal property.
Your landlord's insurance does not cover your personal belongings. The landlord has a policy to cover his(her) building only. Then there is liability coverage. Your landlord's policy most likely does not include liability for something that happens in your rented residence. You could be held responsible for injury to another person or damage to another person's property if an incident occurred within your rented residence, or elsewhere. Without liability coverage, your current and future earnings could be at risk. Renters insurance coverage may also provide legal defense costs. For instance, if you accidentally leave the kitchen sink on and it overflows into your neighbors’ apartment, you could be found liable for that damage—and required to pay for repairs, medical bills related to the accident, as well as defense costs if they bring a suit against you. Renter’s insurance would cover those costs.
How do you decide how much is enough coverage? Some companies have a minimum amount they will start a renter's policy at. Usually about 20,000 in coverage. If something happens to your residence that you are renting and you would have to replace all personal belongings would that be enough? That would include your clothing, furniture, and anything that has a monetary value. 20,000 would be enough for 1 person unless you have a lot of expensive items such as furniture or computers. But would it be enough for 1 adult and 1 or a couple children? They have toys and clothes plus furniture. It is better to go higher than find out you don't have enough when it's too late.
One suggestion once you have decided on your coverage amount is write down or video tape everything in your home. No matter how small it may be, it is some value to you because it is in your residence. Plus if you ever have a catastrophe you will be so upset you may not remember all the items that you had until you go to use them and realize you don't have it anymore.
Most people's belongings are often worth more than they think. That's one reason why you need Renters Insurance coverage. Renter's insurance is safe to have and usually not very expensive either. No, none of this is fun to think about, but believe me—it’s a lot easier to plan (and pay) for it before it actually happens. Call your agent today to get a quote to cover your personal items.
