How much do you know about renters insurance? Do you really need to have it? Under what circumstances would it be okay to go without this type of insurance? Can other types of insurance take the place of a renters insurance policy? Take this quick “quiz” to see how much you understand about renters insurance.
True or False? If your landlord has insurance, then you won’t need to buy renters insurance.
False. Your landlord should have homeowners insurance on the building that the apartment, condo, or room that you are renting is located in. This is necessary for your landlord to have because he or she is the owner of the building.
That homeowners insurance policy is going to provide protection for your landlord in case the building is damaged. It is not going to cover the damage done to your property, however. You would need to get a renters insurance policy to cover the repair or replacement of your own, personal, property. Your landlord is not required to replace your stuff.
True or False: Your roommate already has renters insurance, so you don’t need buy your own policy.
In most cases, this is false. Does your roommate’s policy actually say that it will cover his or her stuff and the stuff owned by the other people he or she is living with? Most policies only cover the person who purchased it, but a few will extend that coverage.
If you find that your roommates policy will cover your stuff, then the two of you need to get together and make sure that amount of coverage that policy will provide would actually be enough to replace all of your stuff, and all of your roommates stuff, in case everything burns up in a fire. Did your roommate plan on covering your stuff, too, when that policy was purchased? It’s important to find these things out.
True or False? My stuff isn’t really worth insuring.
False. It doesn’t matter that your furniture came from the thrift store, and that your dishes came from your parent’s house. It will still cost something to replace those items if they are stolen. Do you have the money in your bank account to easily replace all of those items on your own? If not, then it would be a good idea to get renters insurance.
True or False? You don’t live someplace known for having natural disasters, so you won’t need renters insurance.
False. Natural disasters can happen anywhere. Your property could be affect by wildfires that happen near where you live. Your building could be hit by lightning, which might fry all of your electronics. The weight of the snow on the roof during a blizzard could cause the roof to cave in, and destroy everything in your apartment. Renters insurance can help with that.
Image by Brian Rosner on Flickr