When Do You Need Renter’s Insurance? Is It Always a Good Deal?


A lot of people who rent their homes or live in an apartment don’t think about renter’s insurance. Homeowner’s insurance makes sense for people who own their property, but you don’t need insurance if you don’t own anything, right? Well, let’s think about that for a second. You do actually own things: your furniture, your electronics, your personal belongings.

What happens if those items are destroyed in a fire, or stolen by a burglar? Would you get any compensation for your things, or would you be left with nothing to show for your hard work? This is where a renter’s insurance policy comes in.

Do You Need Renter’s Insurance?

Depending on the stipulations of your agreement with your landlord, you might need to have renter’s insurance to live in a rented property. In these cases, the property owner is usually trying to reduce the likelihood that renters try to sue them for damages should the renters’ property be lost.

However, even if your living situation doesn’t literally mandate that you have to have renter’s insurance, it’s generally a smart idea to get it, anyway. Renter’s insurance isn’t all that expensive, and it can cover you against a wide variety of potential losses of property.

Lower Income Benefits

You might be thinking “there’s no way I can fit that into my budget, I don’t make that much money!” However, some would argue that this is an even better reason to fit renter’s insurance into your budget. Consider this scenario: you invite some acquaintances over to your apartment for a meal. One of them who you don’t know well goes down the hall to your restroom and slips on a cardboard tube that must have bounced out of the bathroom trashcan.

The person hits their head on the tub, becoming seriously injured, and they sue you for personal liability for the accident. You could be on the hook for a lot of money if you don’t have renter’s insurance that includes personal liability coverage.

Loss of Use Coverage

Another potential coverage type in renter’s insurance is “loss of use” coverage. This coverage type kicks in if you’re unable to live in your rented property because of an event covered in the policy, like a pest management company bug treating the building.

In the event of a loss of use, this type of coverage would continue to pay your bills relating to the rental property for the duration of the time you’re not there. If you’re hard-up for money, this is a huge help. After all, most people struggle to meet their normal bills, let alone doubling them if they have to find a new, short-term living arrangement.