The Importance of Renters Insurance

When you rent a home or apartment rather than buying it, you’re essentially living on someone else’s property. The differences between renting and owning are many, and it’s important to know what kind of agreement you are entering into when you agree to rent a house or apartment. Basically, you are agreeing to rent the space under terms set by the owner of the property, and in return you have a place to live. Most often, you will also have the luxury of any necessary maintenance and repairs being taken care of by the landlord, which is one of the benefits of renting as opposed to buying.

However, despite the fact that the property you are renting will be covered under your landlord’s homeowner’s insurance, your belongings and anything else you own inside of the house or apartment will not be. That’s why it’s so important for renters to invest in renters insurance to protect their belongings from any unforeseen circumstances that may arise.

An example of the difference between what is normally covered under your landlord’s homeowners insurance policy and what is not, can be demonstrated by the following scenario: Say there was a fire in your house or apartment and the fire destroyed everything in your bedroom before you were able to put it out.

Under the landlord’s homeowners policy, the damage to the room would be covered, including fixing and replacing all walls, floors, windows, etc. However, the damage to anything inside of the room that belonged to you would not be covered. That means your bed, clothes, electronics, or whatever else was lost in the fire would be lost.

However, if you had renters insurance, these items would be covered and you would be able to have them replaced by the insurance company.

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