Why do I need renters insurance?

When you rent an apartment or house, renters insurance ensures that you're protected against loss or damage of personal property. While your landlord will likely have insurance to cover the building, you'll need renters insurance to cover your own belongings. Some landlords even require their tenants to purchase renters insurance before being allowed to rent or lease. Renters insurance is a wise decision for both the landlord and tenant by protecting both from the possibility of a lawsuit by the other.

Not only does renters insurance provide protection for your personal items, but it also may give you temporary housing if your leased apartment is not livable due to a disaster. Some renters insurance policies include liability coverage. For instance, medical expenses incurred by a friend visiting you who falls on your floor and becomes injured may be covered by some renters insurance policies.

Although your coverage will vary depending on your policy, most renters insurance policies provide coverage for losses in cases of fire, lightening damage, hail, windstorm, smoke, theft, vandalism, plumbing malfunctions, and electrical surge damage. Losses incurred due to earthquakes, floods, and hurricanes may not be covered by renters insurance; instead you may need to purchase additional separate coverage for these.