Do I Really Need Renter’s Insurance?

Should I buy renter’s insurance? This is a question that comes up a lot.  Some people figure the landlord’s insurance will cover everything.  Unfortunately, this is not the case.  The landlord’s insurance only covers the structure.  Your personal items would not be covered; this is where renter’s insurance comes in.  In most cases, renter’s insurance covers your personal belongings that are destroyed or damaged such as in a fire or robbery.  Cases in which they may not be covered would be disasters such as flood, earthquakes or tornadoes.

There are two types of renter’s insurance that you will come across.  The first pays an actual cash value, while the other pays a reimbursement amount.  The cash value policy will reimburse you for the actual cost of the item.  The reimbursement pays what the personal property would be worth after depreciation.  With either policy, if you have antiques or valuables, you will want to get them appraised so you have an idea of what they are worth if disaster were to strike.

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