Do I Need Renter's Insurance?

You may want to consider purchasing renter´s insurance. It generally covers loss of property when something you own is stolen or destroyed by fire, water, theft or other casualty loss. Some landlords require in the lease that the tenant carry renter’s insurance.

You can buy insurance that covers the loss of property based on the actual fair market value of the item at the time of the loss. The more expensive replacementinsurance will cover the cost of actually replacing the item, which is usually more than its depreciated value. Some types of renter´s insurance cover the cost of personal injury if you or your guests are injured on the rental property or if you negligently injure someone or damage their property.

Many tenants assume that the landlord has insurance that will cover their losses and they are often disappointed. Even if the reason your property was destroyed was the fault of the landlord, you may have to get involved in a lawsuit and prove negligence to recoup your loss. If the loss is covered by your own insurance, your insurance company issues a check to cover the loss and then proceeds against the responsible party, if it is feasible.