If you are looking to rent a house, an apartment or a condo, you probably have come across dozens of ads on renters insurance and its benefits. But, is it really necessary? How much does renters insurance cost? Is it tax deductible? What type of coverage does it offer?
Learn all about this type of insurance, how you can get the best renters insurance in the market, what you should look for in a policy and more, below.
Renters insurance is a type of property insurance that covers your personal property and protects you from any liability claims. However, unlike a homeowners insurance, this type of protection only covers belongings, it does not cover a building or its structure.
Living in a shared building can bring risks. Regardless of how careful you might be, you never know when a neighbor might leave a door open, a cigarette on or might let the wrong person into the building. For this reason, having that extra protection can make a big difference.
Landlords have property insurance which provides coverage to the building, but it does not cover your belongings or the damages you may cause to others. Additionally, if by any reason someone has an accident in your apartment and decides to sue, your landlord’s insurance will not cover that either. For these reasons, having renters insurance may be the right move for you.
Is Renters Insurance Required by Law?
No, renters insurance is not required by law. However, some landlords may ask for it before signing a lease or within a specific period of time. They tend to ask for it mainly because, in the event of a disaster, renters will be covered and he or she can avoid lawsuits in case their tenants’ belongings are lost.
In many cases, having renters insurance is considered a plus for landlords, and if there is another candidate interested in the property, it may be a decisive factor to sway the decision in your way.
Whether to get renters insurance will depend almost exclusively on your belongings, their quality and value. Even cheap renters insurance can provide financial relief in case your furniture is ruined or some of your valuables are stolen. Also, if the building is under repairs and you need to stay somewhere else, your renters insurance will cover that.
If you already have a separate liability policy that protects you in case someone is injured in your home, you may not want to get another type of insurance, but ultimately it’s your choice.