Should you have renter’s insurance?

As a renter there are considerable benefits to obtaining a renters insurance policy.   Most insurances companies will provide this coverage at very reasonable cost to you.  This is especially true if you bundle it with other insurance coverage, such as your car insurance.   Let’s take a look at renter’s insurance and the many ways it can benefit you.

Personal Property

Renter’s insurance includes coverage that protects your personal property.   This includes everything you personally own, and that can total a healthy sum.  This coverage provides cash which allows you to replace your property in the event of theft, fire or something similar.  It’s important to note that most of these policies have a coverage limit so be sure you have an idea of the estimated value of your property and compare that to the coverage limit on the policy so you know that you’re covered.


Liability coverage is another aspect of renter’s insurance.  Liability is basically insurance to protect you from paying the full cost of damages to another person’s property.  In context in a renter’s insurance policy this typically means that you’re protected from something you’re found responsible for causing.   For example, starting a fire or any injuries to guests while in your home.  As with the personal property coverage there are limits to the amount covered here as well.

Living Expenses

This coverage can help you cover the costs of living if you are unable to live in your rental unit after a fire, flood or something similar.  It can help cover the additional costs, over what you’d typically spend, on food, hotel rooms, etc.  Again there are limits and restrictions of these policies as well so be sure you fully understand what your policy covers.

Things to Consider

There are other things to consider when deciding where to buy your renter’s insurance policy.   Most policies with a low premium typically have a high deductible so be sure to weigh the costs now with the potential costs in the future if you have to pay a deductible. Additionally, it’s important to understand that the coverage only covers your belongings and does not cover damage to the building.

Be sure to talk to an insurance provider about all of the options available and what is covered by the policy and what is not covered so that you can choose the right renter’s insurance for you.