Do We Need Renters Insurance?

Unless you have enough funds to replace all your personal property (TVs, clothing, furniture, etc.) in the event of a catastrophic loss, a renters policy is advisable. Even people who have enough savings to cover these potential losses often continue to carry a renters policy since it is very affordable. These policies have similar coverage to what you would find in a homeowners policy, with the exception of the building coverage. A renters policy covers the same exposures as homeowners, which includes fire, lightning, theft, windstorm and numerous other perils.

To determine the amount of coverage you’ll need, figure out the cost of replacing all your personal items. 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 line of coverage. Another additional line 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 at the rental property.