Q: Do We Need Renter’s Insurance?
Unless you have enough funds to replace all your personal property (TV’s, clothing, furniture, etc.) in the event of a catastrophic loss, then a Renter’s Insurance policy is advisable. Many people who even have savings enough to cover this potential loss continue to carry Renter’s Insurance since it is just very affordable. A renters policy is similar to the coverage’s you find in a homeowners policy without the building coverage. A Renter’s policy covers the same exposures as a homeowners which includes fire, lightning, theft, windstorm and numerous other perils. You would need to place a value on the cost replacing all of your personal items and that would be a guide for the amount of coverage to protect. You may want to add a little additional padding since the policies pay to replace items up to the limit you purchase. If you have any special items such as jewelry, firearms, silver or art, many of these require a separate schedule to protect these additional items. Another coverage that is typically overlooked is the Personal Liability protection provided as a part of the policy. This covers you for any bodily injury or property damage caused to a third party when they visit your rental residence. Just like with Auto Insurance, you need to carry Liability limits that will protect your personal assets from lawsuits that may arise from the rental of the property.