Is Renters Insurance Worth the Cost?

Oftentimes we have to rent an apartment on the premise of buying our own home one fine day.  However, knowing that such apartment (or any leased property) is just a temporary hang out to stay until the dream day comes, many people decide to avoid investing too much in it, and see renters insurance as a worthless option that simply adds more money to the rent price.  Do not be confused thinking that the money you could pay for this coverage goes to the landlord’s pocket, nor benefits him or her in any way, as this expense is neither money thrown to the wind.

Understanding First What Renters Insurance Is

There is too much confusion when it comes to taking out a renters insurance policy because a common pitfall people fall into is believing that this coverage adds additional protection to the leased property, when it is really is protection for tenants, hence it is worth paying for it.  Renters insurance protects your own assets and possessions, as those of the landlord are already covered by his or her own home insurance policy.

“We have renters insurance.  Clap! Clap!”.  Joy by Marwa Morgan, on Flickr.  This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

Renters Insurance Protects Your Possessions

When you sign the contract to rent a property, damage and repair to the structure you are going to live in is usually covered by the landlord’s home insurance, unless such damage is the result of your own irresponsibility, as often noted in such contracts.  However, all that you carry with you to your new rented home is your own responsibility and a landlord’s insurance policy does not include any clause that protects your possessions, hence it is worth it to pay renters insurance to obtain this coverage.

Not Just Protection but Also Damage and Loss

Effectively, while renters insurance is taken out to protect your belongings, you must be aware that this protection also covers any damage that they suffer and an eventual loss.  Damage to your possessions may occur accidentally or be the result of natural disasters or environmental conditions such as a flood.  On the other hand, with renters insurance your assets are also protected from any burglary action.

Insurance that Protects Your Guests

Once moved into your leased home, you may often receive guests that could be exposed to accidents.  With a renter’s insurance policy, your guests are also protected because the insurance company will pay any medical expense resulting from injuries they could suffer while visiting, so that you do not need to pay for such expenses directly from your own funds.

Renters Insurance Gives You Peace of Mind

Certainly, knowing that your possession and your guests are protected in the eventuality of an unexpected event, there is another good reason to take out renters insurance.  Sometimes someone might suffer an accident inside the place you are living now, but despite his or her medical expenses will be covered by your insurer, such individual might decide to sue you after the event.  If this is the case, your renters insurance policy will cover any liability resulting from a lawsuit.  So once again, here is another good reason why renters insurance is worth the cost you pay for it.