1. Personal property replacement – If there was a fire in your building, it’s unlikely that you would have enough money to replace every single item. Your landlord does not provide coverage for your personal belongings, as they don’t have an insurable interest. Your renter’s policy would pay to replace each and every covered destroyed item, up to the policy limit.
2. Liability Coverage – If somebody was in your apartment and slipped and injured themselves, they may decide to bring a suit against you to recover damages. After factoring in defense costs and any awarded damages, a simple suit can cost upwards of tens of thousands of dollars. Your renter’s policy would help pay to cover you up to the policy limits.
3. Living Expense – If your apartment was destroyed by fire, would you have money to relocate and re-establish into a new home? Or perhaps pay for a hotel until you could find a new place to settle? Your renter’s policy helps pay these expenses.
4. Medical Expense – The medical expense portion of your policy pays to others if they are injured in your property.
5. Theft – Rental properties are just as susceptible to theft as any other property. If your apartment was broken into and your finer possessions were taken, would you be fine to let them go? Your renter’s policy would cover most items for replacement.
6. Water Damage – If there is a water issue in an adjoining apartment that goes through the walls and damages your possessions, does your landlord cover it? No. Your only option for recovery would be to file a suit if the landlord in negligent. Lawsuits are long and there are never any guarantees.
7. Vandalism – Renters insurance can help replace any damaged items in your apartment, due to a vandal.
8. Fire and Smoke – If a fire breaks out nearby in the building, it can cause irreparable damage. Even if the fire never makes it to your unit, the smoke alone can damage most of your belongings.
9. Discounts – If you carry auto insurance, talk to your agent about adding renter’s coverage. There are multi policy discounts for having two lines of business with the same carrier. Certain carriers offer such large multi policy discounts that you can add renters insurance for almost no cost.