What is renters insurance? Do I really need it?

• Home insurance
• Household insurance
• Home owner insurance
• Renters insurance

When a landlord rents a property he usually has his own homeowner insurance. This will protect him/her against loss or destruction of the property itself.
But in most cases the your personal property is not covered.

If you are victim of a burglary or if there is a fire then you need to be covered as well. Your landlord insurance will not cover you for possible losses or damages.

A good renters insurance will cover all your belongings and the physical property itself should be covered by the landlord own insurance.
Another benefit of most renters insurance is that it covers you against possible liability in case of injury caused by you, your family member or your pets.

Furthermore a good renter insurance will pay expenses if you are unable to stay in your rented property, (because of fire or water damage for example). Some might even cover other expenses but within limits.

Renters insurance checklist

What you need to look for when getting renters insurance

• Are all your belonging covered or is it limited to certain items.
• Is it a replacement policy? (The insurance company will replace whatever is damaged).
• Is it a cash policy? (The insurer will estimate the value of the item to be replaced minus depreciation).
• Are forces of nature covered? (Flood, lightning, earthquake and so on).
• does the renters insurance make a distinction between flood and water damage?
• Are your legal costs covered if you have to go to court?
• What happens while the house is been repaired? Are your costs covered, (Temporary accommodation)?
• Are accidental losses covered?
• Do you need to take an extra insurance for really expensive items, (such as jewellery)?