If you're looking to rent an apartment, you may have heard about renters insurance. Renters insurance provides coverage for your personal belongings, liability, and additional living expenses but is it required by law to have renters insurance? Unlike auto insurance or landlord insurance, the state does not require that you purchase renters insurance. Though it is not a law to have renters insurance, some landlords and property management companies will necessitate it as a condition of your lease, similar to how mortgage lenders may require homeowners insurance. A landlord will stipulate that their tenants get renters insurance to help protect themselves financially, but it's actually in the best interests of the renter as well. It's always a good idea to protect yourself with renters insurance, and luckily it is one of the most affordable types of insurance, often costing only around $15 a month.
Why Landlords Require Renters Insurance
As mentioned, it is not required by law to have renters insurance. However, some landlords will require tenants to get renters insurance as part of the lease agreement. If a guest is injured in a rented apartment, they may seek compensation. All renters insurance includes personal liability coverage, which will cover associated legal or medical fees. If a tenant does not have insurance, the injured party may go after the landlord instead, so renters insurance is a good way for landlords to avoid liability claims. Landlords are only responsible for the exterior and structural repairs they aren't responsible for damage caused inside the unit or to your personal belongings. A tenant without renters insurance may try to collect damages anyway or be unable to pay for damages they caused, so requiring it simplifies things for the landlord.
Why You Need Renters Insurance
You know why landlords sometimes require you to have renters insurance, but there are reasons you should want it as well. Without a policy, if you experience theft or a fire, you'll have to pay to replace your belongings out of pocket. This can quickly add up, making renters insurance worth it for that possibility alone. Furthermore, if, for example, your dog bites a guest, or you damage someone's property, you'll be liable for any related claims. Personal liability coverage, a category of renters insurance, will cover the majority of expensive legal and medical fees that can arise from such situations. You'll also are covered for additional living expenses accrued, such as hotel charges or food costs, should you have to temporarily relocate if your apartment becomes inhabitable. Most policies cover up to at least $100,000.
Getting Renters Insurance
Now you're looking for a policy, not because it is required by law to have renters insurance, but either because you've been convinced it's a good idea or because your landlord has included it as a condition in the rental agreement. Whatever the reason, you'll want to find a policy that has your desired coverage and fits your budget. The first step is always to shop around and compare quotes. There are many insurers available, and you have a wide range of options for what and how much your policy will cover. Look for insurers that are highly rated in your area and know that you can often take advantage of discounts to lower your premiums. Once you've made a choice, be sure to keep a copy of your policy or statement so you can show your landlord at their request.