I see a lot of questions from the insurance public about this important coverage. Renter’s insurance policies provide a considerable amount of coverage for a relatively small premium. For starters, it is extremely valuable coverage in the event of a loss to your personal property from perils such as fire, smoke, theft and several other common loss circumstances. It also provides some coverage for liability which can be of significant value. Other desired coverages can be economically added.
From a personal standpoint, my Wife and I saw the value first-hand when our Sons had a severe kitchen fire in their apartment in Raleigh, NC a few years ago. Fortunately, no one was hurt but the apartment became totally uninhabitable as a result of the fire and smoke damage. Because one of our Sons was astute enough to have purchased a renter’s policy (…he finally listened to his Parents!…) they were reimbursed for all of their burned and smoke-damaged possessions. Additionally, they received full reimbursement for living expenses elsewhere while restoration was being completed. When the landlord sued them for negligence related to the cause of the fire…which was quickly thrown-out in court…the insurance carrier provided them a defense for the allegation of negligence, including the presence of a defense lawyer during the formal hearing.
All-in-all, it cost our Sons their very affordable premium and a small loss deductible to get back to their lives. Without the renter’s policy, they would have been ‘hurting’ for a long time!