Let me first throw in that I am not an Insurance professional and this is not to be considered professional insurance advice. This is just collected from years of experience within the rental field.

Having insurance on your car, truck, boat, or motorcycle is a necessary evil and we have no problems getting our wheeled toys covered. We might not to be able to replace them when something drastic happens, or when we have a mishap on the road.

Face it, it could happen to the best drivers.

So, why do many of us who are renting a home feel that insurance is not needed for their personal possessions they have inside their house or apartment that they rented?

There are several things you need to keep in mind when you decide not to purchase renters insurance.

1. Don’t assume your stuff is covert by your landlords insurance.

Any good property owner will have insurance on their property they are renting out. The insurance many times only will cover the structures and any of the owner’s personal property, like the refrigerator or stove when they have them for the tenant to use inside the unit.

Many of the landlords will request in their lease agreement for you to carry renters insurance. Many times the lease agreement will state that the owner’s insurance policy will not cover the tenants personal possessions inside the rental unit.

2. Can you replace the personal things you have right now?

The personal things you have now, you probably have accumulated over many years. Look around and just for giggles add up what it would cost you today to replace everything. Could you go out and purchase everything again when you lose it in an emergency?

3. Renters insurance not only covers your personal property

In many cases renters insurance not only covers your personal possessions, but also another tenant’s possessions, when it was you who caused the damage to their property. Simple example is when you forgot to turn off the sink faucet while you are on the phone with your friend and you are flooding the neighbor’s apartment in the meantime. Would you be able to replace the neighbor’s possessions?

To find more out about renter’s insurance contact your insurance provider you have for your vehicle. Many times when you have a vehicle insurance with them, they may also have a renter’s policy, and you may get a price break on one or both.

When you have question about anything real estate related feel free to contact the Settles Team.