If you’re a renter, you may think that having insurance is only for homeowners and that it is an unnecessary expense. Why bother paying for insurance when you don’t own the house? The key thing to understand a homeowner’s insurance policy protects you far beyond just the structure.
A renters insurance (e.g., an HO-4 policy) is basically a modified homeowner’s policy that is explicitly designed to protect you in the following ways:
- It pays for damage to your personal properties, e.g., your belongings that are inside the house (and even protects your belongings away from home).
- It pays for expenses that you incur if the property becomes uninhabitable.
- It protects you against financially in case you are found legally liable for bodily injury or property damage.
- It pays for items lost due to theft and burglary.
Since a renters policy does not cover the dwelling and other structures, it is very affordable. Remember that your landlord’s policy doesn’t cover you for any of the items listed above. For the specific cost and coverage, talk to a local real estate agent to help you determine the best coverages for you.