Worst Case Scenario: What Can Happen If You Don’t Have Renter’s Insurance?
If you don’t have renters insurance, you are not alone. The Insurance Information Institute reports that 65% of renters go without this coverage, thinking it is unnecessary or too expensive. Unfortunately, by the time they need it, it is too late.
Consider the many renters impacted by recent natural disasters. While homeowners’ policies offered landlords coverage for property damage, renters without their own policies had to replace all of their possessions out of pocket.
Injured Guests
It is a little known fact that renters can be held liable for injuries to their guests. For example, dog bites result in an extraordinary number of emergency room visits each year. Many tenants believe that these situations are covered by their landlords’ policies; however this is often not the case. Renters insurance can be purchased to cover liability, which includes the cost of mounting a legal defense.
Fire Danger
Homes damaged by fire bring significant expenses to residents, and replacing personal items is just the beginning. Some tenants are lucky enough to be able to stay with friends or family after such a disaster, but others find themselves in hotels, eating expensive restaurant meals for days.
Liability for certain types of fires can rest exclusively with renters, according to Nolo. Under these circumstances, you could be responsible for replacing your own possessions in addition to paying any costs associated with damage to your neighbors’ possessions.
Renters insurance covers such costs, relieving significant financial pressure in an already difficult time.
Thieves and Burglars
Unfortunately, theft is all too common in many of the areas with a large number of rental properties. Though you might think you don’t have much of value in your home, the truth is that even a moderate collection of electronics and furnishings would be hard to replace all at once on most budgets.
Imagine the cost and inconvenience of having your laptop stolen from your car or your camera stolen from your luggage while on vacation. Renters insurance generally covers these situations, offering policy holders the same sort of protection that homeowners enjoy.
The primary reason many tenants go without renters insurance is the myth that coverage costs too much. However, the premium for a renters insurance policy at the Lake of the Ozarks, Missouri is typically between $15 to $30 per month, depending on factors such as the value of covered possessions and the home’s security. At such a low price, these policies are well worth the security and peace of mind they bring.
