Legal Quizzes
Legal Tip: Always Buy Renters Insurance Deborah Nelson+ March 17, 2015

If you own a home, chances are you have homeowner’s insurance.  Your mortgage company will require you to purchase homeowner’s insurance until the mortgage is paid off.  If your lender finds out you don’t have this insurance, it will purchase it for you and add the cost to your mortgage payment.  However, if you don’t own a home and you rent, there isn’t anyone who will force you to purchase Renter’s Insurance, even if your lease requires it.  As a result, many people don’t buy Renter’s Insurance. This is a BIG mistake.

Renter’s Insurance will insure your goods whether they are damaged or stolen from your apartment, your car, and, in some cases, a storage facility.  Unlike homeowner’s insurance, which includes a set amount of coverage based on the value of your home, YOU determine the value of your Renter’s Insurance.  You tell your insurance agent how much you think your possessions are worth and purchase insurance for that amount.  The exact amount of the premium is determined based, in part, on the place you live and your insurance claims history.

If your goods are lost or stolen, you can make a claim up to the value of the insurance that you purchased. People often assume their landlord is responsible if their things are destroyed in their apartment. But, that isn’t always the case and it can take months and a lot of money to resolve that issue. Many people think their possessions aren’t worth enough to justify purchasing Renter’s Insurance. However, have you ever thought about how long it would take you to start over – from nothing?  Far more money than you ever would expect.

So, do yourself a favor and purchase Renter’s Insurance. Bonus Tip:  Be sure to buy “Replacement Cost Coverage” so that your insurance company will pay you the amount of money it will actually take to replace your items with “like kind or quality” goods.