Is Renters Insurance Worth It?
Unlike homeowners insurance, renters insurance doesn’t cover the structure or dwelling because it’s typically included in the landlord’s policy. However, your landlord may require renters insurance on your lease before you move into your new home to accompany their policy. Typically, they’ll set a certain minimum amount of liability coverage for your policy. However, it can still be worth getting coverage beyond what’s required or even if your landlord doesn’t mandate it at all.
The goal of renters insurance is to return the renter back to the state they were in before an unexpected disaster occurred, so it can definitely be a worthwhile purchase if you want to avoid any unexpected or burdensome expenses. Here’s what gets covered under a standard renters insurance policy:
- Liability coverage: This is the coverage that your landlord will require because it protects you both when someone gets injured in your home, paying for their medical bills or legal fees in case a lawsuit stems from the event.
- Medical payments: This is similar to liability, but it extends medical costs for those injured in your home, regardless of who was at fault.
- Personal property: Your personal belongings will be covered based on the value amount that you select in your policy. If a covered event occurs, you’ll be able to claim all of your losses and get paid for them by your renters insurance provider. Depending on what you select, the policy may include the entire replacement cost of certain items.
- Loss of use: Loss of use covers additional costs you may incur if a covered peril causes you to be displaced or relocated. Such costs can include hotel fees or even extra gas costs for an extended commute.
If you’re still unsure about your decision, it never hurts to get quick online quotes from a few companies to see what they offer and what price points are available for your home.