Renter’s insurances is a lot like homeowner’s insurance, but for renters. It will replace any property that has been destroyed in the event of a calamitous event – a fire, for example. A lot of people wrongly believe that it is the landlord’s responsibility to replace possessions in the event of a fire or other unforeseen calamity. The landlord’s homeowner’s insurance is supposed to cover that sort of thing, right? Actually, the answer is no. Your landlord’s homeowner’s insurance policy only covers your damaged or destroyed property if the loss can be shown to be the direct result of the landlord’s negligence. Otherwise, you’re the one who’s on the hook for any damage to your belongings, not the landlord’s homeowner’s insurance company.
This is where renter’s insurance comes into play. If your property is replaced, your renter’s insurance policy will cover it. Even if you don’t feel like your possessions are worth much individually, just imagine how much it would cost you out of pocket to replace everything you own. Even if all of your combined property isn’t worth much, you can still benefit from the liability protection that renter’s insurance provides.
Say you have a party and all your friends come over. Everyone’s having a great time until Sally trips over the rug and falls onto Jim, who then falls and smacks his head on the side of your coffee table. You always thought Jim was a great friend, but now he’s trying to sue you for $15,000. If you don’t have renter’s insurance, this type of scenario could quickly turn into a nightmare. Another, equally nightmarish scenario involves damage to a neighbor’s property. What if your innocent Sunday afternoon barbecue gets out of control and ends up causing damage to your neighbor’s patio as well as your own? Without renter’s insurance, you may be on the hook for thousands of dollars in damage to your neighbor’s property and possessions.
If you’re renting a home or apartment and you have questions about what type of renter’s insurance policy would be best for your unique situation, you should contact a local insurance company that can help you choose the best policy at the best price. Don’t wait until a hurricane or other calamitous event wreaks havoc on your rented Raleigh, North Carolina home. Don’t wait until it’s too late. Purchase a renter’s insurance policy now!