A renters insurance policy protects against loss of your personal property, such as clothing, jewellery, luggage, computers, furniture and electronics. If you have little savings, you will need renters insurance as a way to cover the risk of these events at an affordable price. People tend to have a misconception about the value of their possessions and, consequently, the amount of renters' insurance they should take out. If you are a tenant, it is almost always worth taking out a renters' insurance policy, even if your landlord does not require you to do so.
If your TV is stolen or you lose your dishes in a kitchen fire, your landlord's insurance won't pay to replace them, but a renters' policy probably will. If a court holds you liable, your tenants' liability insurance will usually cover the costs up to the limit you have taken out, even if the incident takes place outside your home. You will only need to take out tenants' insurance if your landlord or property management company requires tenants to have it. The alternative of insuring yourself with your own funds may be feasible, but having a renters' insurance policy could save you considerable money in the event of a disaster.
In the event of a major catastrophe, a renters insurance claim will cover you for damages that far exceed the cost of your premium, even if you have been paying for the policy for years. Although it is not mandatory, anyone renting any type of long-term residence, whether it is a flat or a single-family home, should seriously consider purchasing a renters insurance policy. If you want to save money now, rather than saving it when you make a claim, it may be worth choosing a higher excess to reduce your renters' insurance premium. It is worth taking out tenants' insurance for the peace of mind of knowing that you will be covered in these cases, and that a fortuitous disaster will not force you to buy back your possessions or live without them.
Your renters insurance quote will depend on a number of factors, such as your location and your insurance claims history, but not all insurers calculate their rates in the same way. Before taking out a policy, you should take a personal inventory of the value of your possessions to determine the amount of renters insurance that will cover the cost of replacing them. Arguably, the lower a person's income, the more he or she may need renters insurance, especially liability and loss of use coverages. However, even if a tenant has no personal property, the other coverages make renters insurance worthwhile.
Below are a few examples that demonstrate that renters insurance is often a useful purchase and worth the investment, regardless of who you are.