One major difference between homeowners and renters is having insurance. If you have a mortgage, having home insurance is mandatory. There is no choice. If you rent, there is a choice. As a renter, you have a choice to buy what is called “Tenants Insurance”. You should strongly consider buying it for a couple reasons.
- Your landlord’s insurance policy doesn’t cover your possessions. If there is a fire or a water leak or a theft, your landlord will get insurance funds to pay for the losses to their building. All your contents in that building? Not covered. You might not think you own that many things, but do a quick check. TV, computer, clothes, bicycles, furniture etc. The list adds up really quickly.
- Accidents happen. Do you have people visit your apartment? Do you ride a bike? Do you have a dog or a cat? People trip and fall. Dogs and cats bite people. Collisions happen. Tenants insurance covers you outside of your home. If someone gets injured in an accidental way, and it is partially your fault, you are responsible for those costs. An example, you run into a pedestrian or another cyclist who falls and hits their head. If they miss time from work, the costs can quickly get into the tens of thousands. Lawsuits are not fun and insurance protects you.
- Tenants insurance is not that expensive. You’re not insuring a million dollar house so the costs are quite reasonable. It can cost less than 30 dollars a month. Most major insurance companies such as State Farm, TD Insurance, Belairdirect, Allstate, Intact (among others) offer this insurance product.