Think You Don't Need Renter's Insurance? Think Again

If you plan on renting an apartment or home, then you'll need a policy that covers your belongings in the event of a fire, burglary, or any other type of loss. Unfortunately, too many renters feel that a renter's insurance policy is unnecessary. In 2015, the Insurance Information Institute found that only 40 percent of polled renters had renter's insurance, compared to 95 percent of homeowners who had homeowner's insurance.

Here are a few reasons why you'll want to think twice about going without renter's insurance.

Your Landlord's Insurance Covers Your Landlord, Not You

A common and all-too-persistent myth is that a landlord's insurance coverage will also cover damage to a tenant's belongings in the event of a fire or break-in. In reality, your landlord's insurance policy only covers damage directly done to the actual dwelling and other physical structures on the property, as well as any personal property the landlord uses to maintain the property.

A landlord's insurance policy does nothing to cover a tenant's belongings — that's what the tenant's own insurance policy is for. So if you were planning to rely on your landlord's coverage somehow, then you're out of luck if anything happens to your home or apartment.

Going Without Renter's Insurance Could Cost You Extra Each Month

Some landlords and property management companies have enacted policies effectively penalizing those who go without renter's insurance. For instance, your landlord may have you sign a waiver that waives their renter's insurance requirement in exchange for a small surcharge. Others may assess penalties on those who attempt to do without coverage.

These policies are intended to carefully nudge those who are still on the fence about getting renter's insurance. Unless you enjoy seeing an extra $5 or $10 added to your overall rent each and every month, then you may want to consider getting your own coverage.

Going Without Renter's Insurance Also Means Going Without Other Benefits

A typical renter's insurance policy can do more than simply protect your belongings from unforeseen losses. Your policy may offer other useful benefits, including coverage for your personal property away from home. If someone steals your laptop while you're at the coffee shop, for instance, its loss is covered under your renter's insurance policy.

Your renter's insurance policy can also give you liability protection in case someone is injured in your apartment or home. This can help lessen the impact of a potential lawsuit in case the injured party decides to sue for their medical expenses.