RENTERS Insurance Policy
Many renters operate under the assumption that, since they do not own the property in which they reside, there is no need to purchase insurance. What they do not realize is that, while the landlord may be responsible for expenses related to most maintenance around the property, he or she is not responsible for the renter's possessions. This is the sole purpose of a renters insurance policy: to protect the renter's belongings in the event of fire, flood, burglary, or other means of damage or loss.
In fact, an increasing number of landlords and property managers now require renters to have proof of this type of insurance prior to signing off on a lease agreement. This is often requested to limit the liability of the property manager, and also to secure increased protection for the renter.
Unfortunately you never know when disaster might strike. Why not think ahead and purchase a policy? Not to mention this type of insurance tends to be very affordable. In most cases, a year-long policy costs under $150. Is $15-20 per month worth protecting all of your possessions? Most renters would agree that it is more than worth it.
So, what will a rent insurance policy really do for you? Depending on the specific type of coverage purchased, your policy can allow you to be reimbursed for expenses related to replacing your personal items after just about any type of loss. Some insurance companies will cut you a check for the value of your lost items up front, while others may require you to replace the items before they will reimburse you. Either way, having such an insurance policy in place can reduce your financial hardship.