It makes sense for tenants to take out renters insurance that will provide them with coverage for any loss or damage suffered to their personal property, including liability coverage for any injury suffered by anyone, while on the rental premises. Studies show, approximately, one third of tenants living in rental properties carry insurance, while the others who do not, place themselves at considerable potential financial risk.
A common fallacy amongst renters is that since their landlord carries insurance, there is no need to take out their own coverage. Unfortunately, this is not true. While, your landlord may have insurance, his / her policy typically, applies only to the physical structure of the building and common areas, if any. However, it does not cover a tenant’s property, or injuries that occur within rental units due to tenant negligence. While, the landlord’s insurance may cover a broken pipe or a backed up sewer, or a building that burns down. It covers any damage to the landlord’s building or property, but the coverage does not ordinarily extend to any tenant property that is damaged or destroyed. As well, your landlord’s insurance policy does not cover any injuries caused by another tenant’s pet.
Even if, a tenant has a roommate who carries renter’s insurance, his / her policy will not cover the property of the other. While, sometimes a parent’s homeowner’s insurance policy may cover the property of their student son / daughter living in a college dormitory, students should check the language of their parents’ policy, before assuming their property is covered, as well. Even where, coverage is available through a parent’s insurance policy, it will rarely extends to off-campus housing.
Therefore, if one is a renter, it is best to assess one’s property and ask oneself what it would take to replace it, in the event it is lost, destroyed, or stolen. That gives a fair idea of the amount of renters insurance one should take out. Simply, get in touch with an insurance agency that deals with such coverage, and based on the estimated value of your property, it will come as a pleasant surprise to find how affordable it can be.