Do I Need to Purchase Renters Insurance? The Answer, Common Myths, and More

Written by Mike

renters-insurance-questionsIf you rent the property in which you live, there are insurance details to take into consideration. While the landlord of your apartment likely has insurance, it only covers the building where you live. In other words, your belongings are not covered. If any of your valuables are stolen or damaged, you need a renters insurance policy to recover the value.

Note: renters insurance also offers protection should somebody be injured while visiting your rented residence.

For only a few dollars per month, you can purchase a renters insurance policy that protects all of your valuables. Here are several circumstances that renters insurance protects against:

  • Fire
  • Lightning
  • Theft
  • Windstorm
  • Hail
  • Freezing of plumbing system

Now that you know what renters insurance does cover, here are some circumstances in which you will be on your own:

  • Losses related to business conducted on the property
  • Bodily injury that is intended by the insured

Don’t Underestimate the Value of your Belongings

Although you may be worried about the cost of renters insurance, it is important to accurately value your belongings.

Make a list of all the items you keep in your home, including but not limited to: clothes, furniture, jewelry, and electronics. Remember, some items may hold more value than others. Do you have an extensive art collection? What about sports memorabilia? How about an engagement ring?

Upon adding up the value of your belongings, you will likely find a total well into the thousands of dollars. At this point, ask the following question: could you personally afford to replace all of the items if stolen or damaged by a natural disaster? With the right renters insurance policy, you never have to worry about carrying this burden.

Common Renters Insurance Myths

With so many myths, it can often times be difficult to purchase the right renters insurance policy. Your job is to separate fact from fiction, ensuring that you make the best possible decision.

Here are several common myths that could throw you for a curve:

  • Renters insurance is too expensive for somebody in my position. You may be surprised to find that this type of insurance is much cheaper than home insurance.
  • My landlord’s insurance will cover me. This is one of the most common myths. Your landlord’s policy will only cover the building in which you live, not the belongings that you keep in your property.
  • There is no reason to have personal liability insurance. In addition to protection for your valuables, you want your renters insurance policy to offer personal liability insurance in the event that somebody is injured while visiting your rented residence.
  • My valuables aren’t worth that much anyway. If you truly believe this to be the case, make a list of all your valuables. Soon enough, you will have an idea of how much your belongings are really worth.


Even if you are not required by your landlord to purchase renters insurance, you should consider doing so. With the right policy, you are protecting your belongings while also avoiding potential issues regarding personal liability.