Of all the kinds of insurance in the modern world, renter’s insurance may be the least understood. It is a kind of homeowner’s insurance for the rental market, a way of making sure there is money to pay for damages and theft in your rented property.

Not everyone chooses to use rental insurance, but many people would benefit by giving it a look. Here are some reasons why.

Legal Requirements

One of the best reasons to get renter’s insurance is that the law may require it in your jurisdiction. After all, renter’s insurance makes sure there is someone to pay in case of a variety of calamities, and the policy protects not only the renter, but also the landlord and surrounding tenants. Make sure to check the requirements of law for renters in your city and state, and get the facts on what insurance and what amount of coverage you need to carry, rather than relying on word of mouth or rumor.

Theft

Image via Flickr by :: Photo Jean ::

It is a sad fact of life that some people want what you have and are unwilling to acquire things through legitimate channels. These people may burglarize you and make your things theirs. While we like to think that the law enforcement community will find the perpetrators and return our stuff in such a case, the reality is that most stolen goods are stolen for good: You’ll never see that 5K TV again. However, you can see that 5K’s cousin with the proper renter’s insurance. A good policy will replace your missing valuables in a timely manner, allowing you to get back to your life.

Property Damage

Damage to the property by natural disasters or calamities like fires might be on the landlord’s shoulders in some jurisdictions, but not all. A surprising amount of liability in rental markets rests on the renter, which means you are one bad power surge away from owing your landlord for expensive electrical work. Renter’s insurance policies can help with those costs, providing you with all or a portion of the repair cost and turning a financial disaster into a near miss. Moreover, if a guest of yours is harmed in your rental, it is the renter’s insurance that pays for their care. No one wants to lose a friend over an unfortunate accident and the resulting financial fallout.

Good Cost-Benefit Ratio

Depending on the kinds of coverage you choose and the market you are in, there is often a good cost-benefit ratio to carrying renter’s insurance. It may seem like an uneccesary expense when you aren’t using it, but the relatively low cost of the policy and its utility in emergency might make all the difference. When deciding whether or not to get the policy, look through some online reviews and testimonials to get a sense of how other people feel about the coverage and the provider.

Renter’s insurance can provide unmatched security and peace of mind in a rental property. Just be sure to shop around and find the best policy for you and your home, so you can sleep easy knowing that your property is taken care of.