Tenants: Are Your Contents Insured?

Many tenants are not aware that they need an insurance policy that covers their belongings. The property owner’s insurance may cover losses to the building itself, but as a renter, your own contents will not be covered in the event of a break-in, fire, or natural disaster. If one of these things occurs, you could potentially lose everything you own, and this can be avoided with affordable contents insurance that will cost only a few dollars a week. You should also keep receipts for and photos of your valuables to ensure a successful claim.

Another reason to get renters’ contents insurance is that it’s possible your landlord could require it. Increasingly, landlords require renters to have insurance to further shift responsibility away from themselves (although they aren’t under any obligation to cover your belongings). And renters’ insurance covers property loss due to a surprisingly long list of perils. Besides fire, theft, and natural disaster, you’ll also be protected against damage caused by vehicles or aircraft, explosion, rioting, and vandalism, as well as damage from water or steam caused by household appliances, sprinkler systems, or plumbing.

Renters’ insurance will also give you liability coverage, providing protection if a guest in your home is injured accidentally. Your belongings will also be covered when you travel, regardless of whether they are with you on the road or back at home. Finally, if your home becomes uninhabitable due to one of the perils your policy covers, some policies cover additional living expenses, so you’ll have the funds you need to get temporary housing, food, and more.
As you can see, there are a number of compelling reasons to get renters’ insurance. Be sure you understand your policy thoroughly and ask about anything confusing. Hopefully disaster will never strike, but if it does, it will be much easier to weather if you’re financially prepared.

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