Do You Need a Renters Insurance Policy?
If you rent your home, apartment, or condo, you probably need a renters insurance policy. Renters insurance policies are typically inexpensive, and they will cover your belongings in the event of fire damage, water damage, natural disasters, and burglary. Don’t make the mistake of thinking that you are covered when in fact you are not!
Many people mistakenly believe that if their landlord carries insurance on the dwelling that the renter’s personal belongings are covered as well. This is not true! In order to have your belongings covered, you need your own renter’s insurance. No matter how much insurance your landlord has, or how good the coverage is, it will not cover you, your visitors, or your belongings.
People also believe that if a roommate has renter’s insurance, that the policy extends to them. Again, this is not true in most cases. Unless the roommate carries you and your belongings on their policy, you are not covered. Alternately, if you are the one carrying renter’s insurance, your roommate is probably not covered. In most instances, it is better for each individual roommate to carry their own renter’s insurance policy.
Renters insurance is very cheap. You can get coverage for less than $200 per year in most places; however the rates are determined by where you live. Places that have a higher crime rate typically have higher rates for insurance coverage. This is a small expense to pay for the coverage you will receive.
It is vital that you understand that there is a difference between coverage that protects you in the event of water damage, and coverage that protects you in the event of a flood. Water damage sustained from a busted water pipe is typically covered on your renters insurance policy. However, flood water damage as a result of Mother Nature usually isn’t. A separate flood insurance policy would be required.
