If you are renting a home or an apartment, it’s important to have a renters’ insurance policy in place to protect yourself if the unthinkable happens. Without it, you may lose everything you own with no way to replace any of it. Purchasing a renters’ insurance policy will guarantee that you receive the compensation you deserve if you lose your possessions in a fire or due to theft.
Here are answers to some common renters insurance FAQs.
As a Renter, Do I Need Liability Insurance?
Renters are responsible for what happens in their home, just like a homeowner. If a person trips or falls while visiting, the renter may be liable for any medical expenses they may incur. The same is true if the renter’s pet gets loose and bites a guest. Liability will kick in, and the renter may have to pay for the visitor’s medical expenses unless they have a renters insurance policy that includes liability coverage. With liability coverage, the medical costs and any other damages attached to the event will be covered.
Is Renters Insurance a Mandatory Expense?
Renters insurance is not a mandatory expense. You don’t have to purchase a policy if you don’t want to. However, not having renters insurance will mean that you have no financial recourse if your items are damaged or stolen. Most people purchase a renters policy to ensure they have the financial means to pay for any items they need to replace after a fire or other devastating event. With the right renters’ policy, you will have coverage for your possessions as well as effective liability coverage.
Isn’t My Landlord Responsible?
Your landlord is only responsible for the loss of your possessions if you can prove he or she was at fault, e.g., an act of willful negligence. It would be up to you to prove that the landlord neglected to care or maintain their property and that negligence led to the event that caused you to lose your possessions. Otherwise, the obligation to cover the cost of your possessions would fall on the shoulders of your insurance company. Go over your lease carefully and read about what your rights and responsibilities are. This will provide you with some of the answers you are looking for.
Are All of My Possessions Covered?
When you purchase a renters policy, you expect that all of your possessions will be covered. This is not entirely true. While the majority of your items will be covered, some may require additional protection. Expensive jewellery, artwork, antiques, and collectible items may have a value you are unaware of. Having these items appraised will give you an accurate value at which they can be insured. This makes sure you are compensated for their loss if they are ever damaged or stolen.