If you are about to move into a rented apartment or house, then you need to think about your insurance needs. Even though you don't own the property, you shouldn't leave yourself uninsured. You should consider buying a renters insurance policy. Why?
1. Your Landlord Doesn't Insure You
The person or company that owns your new home will take out their own insurance coverage. These landlord policies typically cover building insurance. However, if your apartment or house is furnished, then your landlord might also buy coverage for the items they own in the property.
None of this coverage protects your belongings. Even if your landlord has some contents insurance, their policy protects their assets and not yours.
For example, if you have a fire in your new home, then some of your furniture and belongings might get damaged. Your landlord can claim their insurance for their property; however, this insurance won't give you any help.
Typically, renters take out insurance to cover the items they own; they don't need building coverage. If you do this, then your belongings also have insurance protection.
2. Your Landlord Might Insist You Buy Coverage
Some landlords make renters insurance a condition of a rental agreement. So, when you sign your agreement, you might commit to insuring yourself. If you don't do this, then you could invalidate your lease.
Your landlord isn't really worried about your possessions here. They are usually more concerned about any liability problems you might cause.
Most renter policies cover liability as well as personal possessions. So, if you cause some damage to another apartment in your block, or if someone gets injured in your home, then your landlord knows that you have coverage to pay for repairs or claims costs. This protects them against liability claims made because of your actions.
If your contract does have an insurance clause, then check if your landlord sets a minimum liability sum. If they do, then you need coverage that matches this amount.
3. You Might Need to Move Out Temporarily After an Insured Incident
If you have a problem in your new home, such as a fire or flood, then your landlord might ask you to move out temporarily until they have restored the property. They don't have to find you somewhere else to live or pay your costs here.
You might struggle to pay for temporary accommodation at short notice. However, if you have a renters insurance policy with additional living expenses coverage, then you get financial assistance from your insurer to help you pay for these extra rental and living costs.
For more advice, contact an insurance agency.