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Why renter’s insurance is necessary

Many renters believe that they do not need insurance for their home, and that they are covered by the building owner’s insurance; however this is not the case. It is crucial for renters to purchase their own insurance, as the policy may help them out should they come across a variety of unfortunate events.

Though the landlord has insurance for the building, contents and liability their policy will not cover the renter’s personal property, and liability exposures. It is important to know the differences between your landlord’s insurance and your own.

If there is a fire in the building, the property insurance will pay for the demolition, and cover the expenses to repair or rebuild; whereas the renter’s insurance will cover all the contents in your unit in the case of a fire. This insurance will likely cover your additional expenses if you need a place to temporarily live while the damage is being repaired.

If there is a break-in, the landlord’s property insurance will not cover any of the stolen goods from your home. In most cases, your renter’s insurance policy will cover your possessions should you suffer a loss.

Also, if you caused a water damage loss by, for example letting a sink overflow, you could be liable to other renters and the landlord, affected by the water damage. Renter’s insurance would protect against claims brought against you.

No matter where you rent, insurance is much the same—your landlord’s property insurance is for the structure of the building, and the renter’s insurance covers your personal contents and liability. Renter’s insurance is available for a small monthly fee that ensures your protection from financial hardship should anything happen.