If you rent, you still need insurance for personal property and if anyone is injured at your place. The good news: It also covers losses when you travel.
If you’re renting an apartment or home, you’ll need an insurance policy to cover your belongings. Your landlord‘s property insurance policy covers losses to the building itself – whether it’s an apartment, a house or a duplex. Your personal property and certain liabilities, however, are covered only through a renter’s insurance policy that you, as a tenant, have to find and pay for. While 95% of homeowners have a homeowner’s insurance policy, only 37% of renters have renter’s insurance, according to a 2014 Insurance Information Institute poll conducted by ORC International. [L1]
Why do so few renters have insurance? One explanation is that many people incorrectly assume they are covered by their landlord’s policy. Another reason is that people underestimate the value of their belongings. If you add up the value of just your clothing and electronics, it probably wouldn’t take long to get into the thousands of dollars. One more often overlooked reason is liability: If someone is injured in your house – a friend, neighbor, or the pizza delivery person – they could sue you. Even if you thought you didn’t need insurance, here are six good reasons why you should get a renter’s insurance policy.