While homeowners are typically required to carry homeowners insurance, the decision for tenants to purchase renters insurance is usually optional. In some cases landlords will require their tenants to purchase this type of policy, but, this is not a common lease requirement in many parts of the country. While tenants may not have a legal obligation to carry their own insurance policy, this does not mean that they should not purchase this coverage. In fact, there are a wide range of reasons why individuals should always carry renters insurance if they are renting their home. Continue reading to learn more about three of the most important reasons you should invest in this coverage as soon as possible.
You may not realize it, but you can be held legally liable if someone is injured while visiting your home. This includes friends and family that come over to visit, as well as individuals such as a pizza delivery driver or cable television repairman who is coming to your home for the purpose of completing a task. If you do not have an active renters insurance policy, these individuals can sue you personally in order to collect compensation for both their medical bills and non-economic losses such as pain and suffering. A renters insurance policy protects you from needing to pay these costs out of your own pocket by offering you liability coverage.
Coverage For Items Inside Your Home
While many tenants believe that their landlord's property insurance will cover damage to their personal belongings, the truth is that this property insurance covers only the building itself and not your personal items. If your personal belongings are damaged due to a natural disaster, vandalism, water leaks, or a variety of other circumstances, renters insurance will reimburse you for the replacement value of these items. Renters insurance will also ensure that you are covered in the event that your home is burglarized.
Coverage For Items Outside Your Home
Not only will your renters insurance provide coverage for your personal belongings inside your home, but this insurance will also provide coverage for your personal belongings if they are located inside your vehicle or on your person. In fact, you can even count on your renters insurance to cover your belongings that you take with you while traveling. This means that if your luggage is damaged, lost, or stolen while you are away on vacation, you can count on your insurance policy to cover the replacement value of the items you lost.