Is renter's insurance worth it?

When you rent a property, many people suggest that you get what is called renter's insurance. This is insurance to cover your personal property found within a rental. So, it is not insurance to cover the structure, but rather, your items that are within it. So, the questions becomes, is it worth the outlay of cash? Many people think of insurance as an expense that yields them very little, that is until you make a claim. Most renters think that because they do not own the home, they do not need insurance. And to an extent, they are right. As a renter, you do not need to get insurance for the structure, but your land lord's insurance likely only covers the structure, and not the personal possessions inside of it. So, is renter's insurance worth it? YES!!!

There are three very good reasons renter's insurance is worth it, and they are outlines below:

1. Theft. If your house gets broken into, your landlord is not at fault, and can't be held responsible for the items that are stolen or damaged in the process. What happens if your bike gets stolen from out front? What about your stereo system or television? Exactly. So, this is a great reason to get renter's insurance. You may think you are not going to get robbed, but it happens very frequently, and complexes, and busy areas, such as rental units tend to be popular targets because people do not notice a stranger's comings and goings as much. So, do not think you are the exception, accept that it could happen, and is worth a few dollars a month.

2. Fire. Once again, it happens, and it may not be your fault. Are your neighbors, and the people above your or below you careful with not leaving their oven on, not smoking in bed, turning the curling iron off, etc.? If you aren't sure, it is worth buying coverage. In addition to human error, old wiring, furnace fires, and any number of other things can cause a fire in your rental property, and while the owner might have coverage for the property itself, what about all of your stuff that get's damaged by smoke, heat, and flames?

3. Flood. If a pipe bursts, if you are out of town, and a sink is left on, and overflows, if a toilet backs up and over flows and you do not catch it and your television sets, computers, furniture, etc. are all ruined, that is not your landlord's fault, and their insurance is not going to cover it. So, getting renter's insurance means having coverage for those just in case moments. Floods happen. Do you want your 60 inch big screen to get fried by a flood, and have no compensation for it? No! Then get renter's insurance.

So, it may cost you a little extra each month, but just consider it the cost for peace of mind, and pay it so that your expensive electronics, and other items are safely insured.