Whether you own or rent, the money you spend is an investment. In addition to paying rent every month, you also pay for utilities and possibly other fees. However, there’s one other thing every renter needs to pay for: renter’s insurance. Renters’ insurance is a type of insurance that protects the tenant and their assets. Here’s why renters’ proper insurance coverage is so important.

Protect Liability

According to the Insurance Information Institute, a renters’ insurance policy can do a lot more than cover you for lost or damaged items. It also protects you from any liability. Unfortunately, despite your apartment feeling like a safe haven, there’s always a chance an accident can happen. For example, if someone you invited over accidentally falls and gets hurt, you could be held liable for it. Renters’ insurance keeps you safe from paying an exorbitant amount of money to the victim, if he or she chooses to press charges.

Furthermore, renters’ insurance also benefits your landlord. Your renters’ insurance policy is basically an extra layer of protection for the owner of your building. If something happens on the property, this policy can keep your landlord from expensive liability.

Insure Their Belongings

You already know that renters’ insurance protects your belongings. What you may not know is that what’s covered depends on what you put on the policy. In order to keep your belongings insured, you must include everything you want to put on the policy. If you have anything such as jewelry, antiques, and family heirlooms, be sure to include those.

Unfortunately, even preventative measures, theft and fire can happen. Having appropriate coverage not only protects you, but it will often cover the cost of replacement regardless of event. According to The Patel Law Firm, most fires in the U.S. account happen in houses and apartment complexes. A renters’ insurance policy might even offer monetary value as well.

The Cost Is Affordable

According to Lemonade, one of the main reasons that people don’t acquire renters’ insurance is because of the price. Although the price of a renters’ insurance policy does vary on the seller, the most you’ll have to pay averages a little over $200. It’s also worth pointing out that the price varies by location. Check your state’s insurance rates to get an estimate of what you’ll most likely have to pay. And think about it—$200 is a lot cheaper of a price to pay than the thousands of dollars you’d have to pay to replace your assets that could be destroyed.

Even the most responsible person living in a low-risk neighborhood should always get renters’ insurance. Anything can happen unexpectedly, so it pays to be prepared just in case.

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