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Is renters insurance required?

Is renters insurance required?

Many people rent simply to avoid the hassle and expense of home ownership. The assumption is that when a tenant pays rent, the landlord handles all of the legal obligations and maintenance issues related to the property. Unfortunately, a renter is still vulnerable to circumstances beyond his control. That’s why renters insurance is recommended for all tenants who rent a home or apartment.

Renters insurance is not legally required by any state currently. A landlord can only require a tenant to purchase renters insurance for liability purposes. Most people assume that the landlord carries a policy on the home that includes coverage for someone who is injured inside the dwelling or on the property. This isn’t the case in most circumstances. Even if a landlord has liability insurance, there’s still a risk to the tenant. A lawsuit for personal injury could be very costly. This type of risk could be greatly reduced by doing research on renters insurance and making an informed decision.

Besides concerns about liability insurance, personal possessions are very important and hold sentimental value to individuals and families. Natural disasters and fires destroy millions of homes every year. In some cases, families lose everything they own. Renters insurance pays for these lost belongings, allowing families to start over after their posessions are destroyed. Having this type of insurance is a personal decision and is not an issue for a landlord.

Many people think that renters insurance is not in their budget or is an unnecessary expense. However, with some research, an adequate policy which covers personal possessions and liability coverage can be purchased for a couple dollars a day.