Renters should purchase their own insurance to cover the costs of accidents that occur in their homes. There are two key reasons renters should purchase their own insurance:
- To protect personal property: Renters insurance helps cover the costs of lost, stolen, or damaged property. Insurance will cover the costs of repair or replacement, as well as additional living expenses resulting from accidents (e.g., staying in a hotel while repairs are being done on an apartment).
- To limit personal liability: Renters insurance helps cover the costs of accidents that occur in the renter’s home. For example, if a dinner guest slips and falls, renters insurance can pay for their medical expenses.
Sometimes, renters will incorrectly assume that their landlord’s homeowners or landlord insurance will cover accidents or disasters that cause financial loss. In fact, renters should purchase their own renters insurance to protect themselves and their possessions.