Do you need renters insurance for a house?
If you’re a homeowner, you probably wouldn’t think twice about getting home insurance, but if you’re only renting, do you really need renters insurance for a house? In most cases it makes sense. Even though you don’t own the home you’re living in, you could still be held personally liable if something were to happen to a guest in your dwelling. Renters insurance offers you some peace of mind from worrying about being sued by a guest who gets hurt on your property.
Why you should get renters insurance
When you think about taking out renters insurance for a house, you probably think it’s going to be costly. The good news is that renters insurance for a house is a lot more affordable than other insurance, like car insurance. For an affordable monthly premium, you’ll be able to protect all your belongings in case something were to happen – a flood, fire or theft.
Furthermore, did you know that you could be sued if you’re found at fault for damage done to other units in a rental building? For instance, if your sink overflows, causing water damage to the unit underneath you, you could be held responsible if you don’t have proper renters insurance. You could also have to pay out of pocket if you have a guest over and they end up causing damage to your unit or someone else’s.
Although as a renter, you probably don’t have as many belongings as a homeowner, it can still be quite costly if you were to lose all your belongings at once due to an unexpected disaster. Replacing your belongings – clothing, electronics and furniture – could cost you thousands of dollars.
Just like home insurance, renters insurance for a house has the added benefit of not only protecting your possessions, but also providing liability coverage. If you’re hosting a party at your place and a guest falls and gets injured, renters insurance can help cover the medical bill of your guest, so that you don’t have to.
The different types of renters insurance
Once you’ve decided to get renters insurance, there are two types to choose from: basic liability and content coverage. Both have advantages.
As its name suggests, basic liability provides the most basic protection. You’re covered if your rental unit is damaged. If you don’t have this, you could be held liable and sued for any damage you cause to the building.
Content coverage protects your worldly possessions if something were to happen. You’ll want to look for a policy with replacement cost. You’ll be able to buy similar stuff if you were to lose them in a fire or flood.