This is one of the most common questions many renters have asked over the years. Most renters, especially first-time renters, don’t have any idea what might happen if they don’t have a renters insurance policy. In fact, roughly 37% of renters own renters insurance, which leaves the majority of people without coverage. Here is a look at what might happen if you don’t have renters insurance.
What Happens If You Don’t Have Renters Insurance?
You need to know that you are not breaking any laws by not purchasing a renters insurance policy. Renters insurance is not mandatory. However, just because you are not legally required to have renters insurance doesn’t mean you shouldn’t consider getting it.
If you don’t have renters insurance, you risk losing your personal property, and your landlord’s insurance will not cover your belongings inside the rental. Your personal belongings can only be covered if you purchase a renters insurance policy, which is one of the reasons why it is important to get it.
To have a better understanding of what will happen if you don’t own a policy, let’s check out this scenario: you are living in an apartment building and don’t have a renters insurance policy. Unfortunately, the building catches fire. While you make it to safety, you lose all your belongings in the fire. What can you do? Well, since you have no coverage for your belongings, your things are gone. Your landlord will simply file a claim and use the money for repairs.
Why Do You Need Renters Insurance?
While you may think your personal property won’t cost you much to replace after an incident, you’d be surprised at how all these things can add up. And, in the case someone is injured at your place, you could be sued and held financially responsible for the damage. Renters Insurance has liability coverage that can help you pay for medical expenses, legal fees, or property damage if you are liable for an accident at your rental or you accidentally cause damage to your rental.
Also, an increasing number of landlords require that you have renters insurance. Most landlords include the requirement because they want to reduce liability, avoid payment for liability, appease insurance providers, and have peace of mind. Even if your landlord does not request it, you can still get the policy since it is affordable and you can get it easily.
Bottom Line…
No rules say you have to purchase rental insurance, and you can easily find a landlord who doesn’t make this policy a requirement. But by having a renters insurance policy, you will have peace of mind knowing that you are protected in the event of damage to your property or if someone was injured on the property.
For help finding the right renters insurance policy, contact All Things Insurance to speak to an experienced insurance agent.
