When you rent, one thing that you’ll need to consider is purchasing renters’ insurance. This insurance can typically be purchased from agencies where other insurance, such as car, home, life, etc., is purchased. So how do you know if you need insurance?
Protection of Property
Just like other insurance, renters’ insurance covers the property where you live. Every rental contract will spell out that if you or someone you invite onto the property damages the property in any way, you’ll be held responsible for the cost of repairs. By having insurance, you’ll be guaranteed to be protected if something of this nature happens. This is especially important if the damage is extensive.
Protection from Thieves
Another way this insurance protects you is if you were robbed. Any item that was damaged or stolen by the burglars would be replaced by the insurance. Knowing you have this insurance brings peace of mind.
Cost
One thing to consider when you decide whether to purchase this insurance is the cost. Typically this type of insurance is not very expensive, possibly costing less than $10/month depending on the plan and the company that provides the policy. The lower the monthly cost, the higher the deductible will be, however. Because of the deductible, you will likely not be able to take advantage of the benefits of this insurance unless something serious happens, but you may be very glad to have it if it does.
Some landlords require their renters to have renters’ insurance; this will be another factor that you’ll have to consider when deciding whether to purchase renters’ insurance.
