Do I need insurance if I rent instead of own my home?
A substantial number of people who rent a home or apartment carry no renters insurance. This is partially due to misperceptions regarding renters insurance.
Many people underestimate the value of their belongings. "Personal property" doesn't just include the expensive things like stereos, TVs, computers and furniture. You can spend a small fortune on clothes, towels, linens, CDs, video games and kitchen items. Some apartment dwellers assume their landlord is responsible for damage or loss, but very few provide this type of protection.
The only way to be sure you will be able to replace your possessions is to purchase a renters policy and any additional coverages you may need. Many renters policies are very reasonable and also provide some liability and medical coverage.
Like homeowners, renters can make insurance claims easier to file if they keep a complete household inventory in a location other than the residence.
Source: Consumer Reports Feb. 1997
Written by Sandra McKinnon and Cynthia E. Crawford, Ph.D., Family Financial Education Specialists, University of Missouri-Extension
Last update: Sunday, April 23, 2006