Many people have the mistaken belief that if they rent a place to live rather than own a place to live that they don’t need insurance. There are perhaps hundreds of thousands of people living in apartments and similar structures who do not possess renters insurance. This is a problem because they are simply misinformed about their need for coverage.
Insurance for renters is a type of policy one gets when they want to protect their personal property within their living space. In the event of a fire, theft, or other disaster, renters surely want to have the value of their possesses recouped, and this type of insurance policy is the only sure fire way to make that happen.
One may wonder if they are the type of person who requires this type of coverage given their circumstances. The answer for anyone who is considering renting either a house or an apartment/townhouse is yes. The landlord does not have responsibility to repay you for your personal property losses in these circumstances. There is nothing that they have to do legally speaking if something terrible happens. That is why an insurance policy is a safety blanket that most people want to have.
If one has to make a claim on this type of insurance, they ought to know how it works. For example, they should be aware that state laws determine the value of the property lost in an incident. This means that the exact value determination could vary based on state. The general rules of thumb are that the value will be set either at the actual cash value of the item when it was damaged, or at a replacement cost but with a maximum liability cap.
Keep in mind that extra coverage may need to be purchased if you work out of your apartment and have business equipment and inventory in that apartment. Those things can still be covered, but look to make sure that the policy is all inclusive.
Since those who rent have the same kind of worries as those who own property, the major benefit of having renters insurance is the peace of mind that it brings. There are plenty of times when disaster strikes and there is no coverage. Luckily, this is not the case when one holds an insurance policy.