Do you really need renter’s insurance?

When moving into a rental apartment, you might think that the building’s insurance will cover anything that happens inside your unit. The truth is, your apartment building’s insurance covers only the structure and common spaces in the building; your personal unit is not included. For this reason, many landlords recommend (or require) that all tenants purchase renter’s insurance.

If there is a fire, flood or theft in your apartment, the contents of your apartment could be damaged, destroyed or stolen. If you have content insurance for your apartment, you can recoup some of your losses.

The cost

Understandably, renters might be frustrated at the prospect of shelling out more hard-earned money. They already have to cover monthly rent and utilities. The reality is that without insurance, residents could be on the hook for repairs and replacements that could exceed the insurance costs. It’s a “What if?” scenario – where you purchase insurance so that if something happens, you’re covered.

If cost is an issue, insurance companies often offer different plans for different needs and budgets. You can likely purchase a basic policy that will work for you.

Liability coverage

In addition to content insurance, you might want to add in a liability policy. Content insurance covers your personal belongings if they’re damaged or stolen in ways that are in no way your fault. Liability insurance covers you for accidents or damage that you would be at fault for. Like we said, you’re already paying for a lot, so why add to your expenses with big-ticket repairs?

In the end, renters need to consider all sides when purchasing renter’s insurance. Yes, it’s one more expense, but it’s one worth adding if you can’t afford to replace items or repair damage out of pocket.

Shop around for the right insurance company. Some offer different pay structures – such as annual lump sums and monthly payments.

If you’re looking to find a rental apartment or condo, find the right place in the right neighbourhood using Gottarent.com.