Renters insurance may not be required by the state, but your landlord may require it. Your landlord’s insurance will not cover your liability or your personal belongings, so you will need to get insurance to cover them. You may think that you can afford to not have renter’s insurance, but if you do a quick home inventory, you could be surprised to find that your belongings could be worth thousands of dollars. Without renter’s insurance, replacing your belongings could put you in a hard-financial situation. Renters insurance will cover not only natural disaster but theft as well.
There are a few basic things that renter’s insurance covers. Renters insurance will first protect the contents of your rented home, such as your clothing and furniture. It will pay for medical payments to others for someone who is injured at your property. It will also cover your personal liability, so if you cause property damage or someone sues you after being injured at your property, you will get coverage. It will also pay for reimbursement for additional living expenses when a covered loss will prevent you from living in your home. Certain policies can cover any building additions or alterations that you make to your rented home, but you need to check with an agent at IRM Insurance for any special coverage. Check with your agent if your belongings are covered under actual cash value or replacement costs. The actual cash value will consider depreciation, while replacement costs don’t consider depreciation and will pay for your belongings at the current market value. Replacement cost policies are usually a little more expensive but are worth it to make sure you have enough money to replace your belongings. Also check to see what expensive items, such as jewelry and electronics, aren’t covered and get additional coverage if needed.