When renting a home or apartment, insurance is inexpensive protection against a number of perils. First and foremost, the Landlord’s insurance does not cover the renter’s furniture or other belongings against fire or theft. Unless there is negligence on the part of the Landlord, it is not likely that the renter will collect from the Landlord for damage or loss of any sort, including temporary or permanent relocation (hotel or moving costs). Fires and thefts do happen. For a cost generally under $200 per year, a renter can have peace of mind… seems a small price to pay.
Renter’s insurance is a variation of homeowner’s insurance. Homeowner’s insurance covers some losses outside the home. For example, if your car is broken into, the antique 8-track collection stolen from the trunk or the notebook computer taken from under the seat is not covered by the auto policy… these are homeowner’s policy claims. If you rent and don’t have renter’s insurance, you’re not covered.
Finally, there is liability coverage included in the renter’s policy. This covers the renter against lawsuits when the kid who delivers those unwanted newspapers trips over your sprinkler hose or the mail carrier falls down the steps on the skateboard. Negligence suits are a real threat and the owner’s coverage protects only… you guessed it… the owner. If you cause a fire or other damage to the property, the owner’s insurance will pay the owner, but that insurance company may come after you, a process called subrogation. Your liability insurance will protect you.