Get Renter's Insurance For Your Apartment

I don't know about you, but when I first heard of renter's insurance I thought it was a bad idea. Don't I have to spend enough on other insurance already?

Even making it a bit more complicated is that the apartment building certainly carries insurance already. Doesn't that cover my part of the building? 

With these questions in my mind it's hard to think about spending this money that I would much rather spend on something else. Besides, I might never need to use renter's insurance. But isn't that the point? It's best to never need it, but it's there if you do!

In reality, it's important to get renter's insurance. And many people are able to take advantage of it, even though they first thought they would not. Here are some of the reasons why it's important to get this insurance...

1. The Apartment's Insurance Is For The Building Not Possessions

You might think that because the owner of the apartment building carries insurance on the building that this will pay you for damages if there is a disaster. While this may be true under certain conditions, you should not count on it.

For example, a lease agreement might specify that the landlord is liable for damages only in situations caused by negligence or by other events due to poor maintenance on the property. In this case, if a pipe were to burst because it's old and wasn't replaced then the damages would be covered. But if the pipe ruptured because it froze, they won't cover it. In the latter case, the pipes did not rupture due to negligence, it burst because of nature.

But if you have renter's insurance your possessions are covered regardless of the circumstances. It's bad enough losing your stuff, but to have to pay for everything on your own to recover, is extra pain you can avoid with insurance.

2. You May Be Saved From Expensive Liability

Do you always do all the cleaning you should do in your apartment? You come home tired from work and you ignore a wet washcloth that fell to the floor that morning. That moisture crept in somewhere and, as a result, mold grew or it attacted pests. Unfortunately, you could be liable for damages in this case if the problem spreads and it can be traced back to you.

Renter's insurance can step in to cover the damages on your behalf. It was accidental. You certainly didn't mean for mold to grow and spread from your apartment, so you might not want to pay the damages. But since you were ultimately responsible, you may get the bill for the cleanup expense. Whew, saved by insurance!

3. Renter's Insurance Might Reduce Your Rent

At some apartment buildings they offer discounts to potential renters if they agree to carry renter's insurance. There are a couple reasons for this. First, if you have the insurance, it demonstrates that you are financially stable enough to handle insurance payments. This "good behavior" also suggests that you won't be late paying the rent or utilities.

Another reason is that the landlord knows if something goes wrong, they will be reimbursed for damages. Usually they will just keep the security deposit in this case, but if you have renter's insurance then there is an additional buffer in case the damages cost more to repair than covered by the deposit. Depending on the type and amount of coverage, you're rent savings could be more.

I hope you can see that renter's insurance comes with some rather significant benefits. At first glance it may seem costly, and it can feel like a waste to spend money on something you don't think you'll need. But, renter's insurance is one of those types of insurance that you should get just in case. Yes, you might never need it, but in the event you do, you'll be very happy you made that choice.