“It’s not my house.  Why do I need insurance?”  As a tenant, have you ever asked that question?  The short answer is that without renters insurance, tenants and their belongings are not covered.

Landlord insurance only covers the dwelling and liability for the property owner.  For tenants and their possessions to be covered, they must have their own renter’s policy.  This insurance can protect them should someone fall in the house or be bitten by the dog, and also pay for legal costs should they be sued.  If there were a fire in the house and all the belongings were damaged by smoke and water, renters insurance can take care of replacing those items.  In this case, the landlord’s insurance will only pay for the structure and built-ins.

So, renters insurance protects tenants and their belongings and is very important to have.  Your insurance agent can most likely provide suggestions to help with the inventory.

Another important feature of renters insurance is that if the home is damaged to where it can’t be lived in, additional living expenses, such as a hotel room, can be covered.  Other things to keep in mind include possibly higher premiums if there is a dog and possibly reduced premiums for a higher deductable or insuring the cars with the same company.