If you rent an apartment or space in a house, you need insurance to protect your belongings. Your landlord’s insurance only protects the building, not your possessions.
Renter’s insurance covers you against losses from theft, fire or smoke, water damage from plumbing, windstorms, explosion, lightning, vandalism and theft. If any of these reasons force you out of your home, with renter’s insurance, your additional living expenses will be covered. This may include hotel bills, temporary rentals, restaurant meals and other living expenses incurred while your home is being rebuilt.
Renter’s insurance will allow you to replace what is damaged or stolen. It also covers your responsibility to other people who may have been injured at your home or elsewhere by you, a family member or even your pet. Renter’s insurance will pay legal defense costs if you are taken to court.
What’s NOT covered by renter’s insurance: floods, earthquakes or routine wear and tear. Separate policies may be available for flood and earthquake damage.
How Much Insurance Do You Need?
Just add up the cost of everything you would want to replace if it were damaged or stolen. This exercise will also be the basis for an inventory that will make filing any claims easier. When you create your inventory, include model numbers, dates and places of purchase. Save receipts if possible. Take photographs or make a video of these items. Have a least one copy of this inventory put in a safe place away from your home.