Your landlord most likely has property and liability insurance. This protects them from damages to the apartment, resulting from a natural disaster, fires or other accidents and criminal acts. The policy amount may be substantial, but it won’t benefit you, other than to have the apartment to return to later when it’s restored. If you think you can rely on your landlord’s insurance, and avoid paying for your own renters insurance, consider these 4 things your landlord’s property and liability insurance won’t cover:
1. Your Personal Belongings
You might like the apartment you’re renting, but you don’t have any monetary investment in the structure. Your worries are more about your personal belongings, which will cost several thousand dollars to replace. That’s why you need renters insurance, because your landlord’s property and liability insurance won’t cover your belongings under any circumstances. You’re responsible for that, and without renters insurance, you could lose items in a fire, theft, earthquake or other natural disaster.
2. Emergency Repairs
When there is an accident or natural disaster, your equipment and other belongings may need immediate repairs. Renters insurance offers a service called “Emergency Repairs After Loss,” where the insurance company will pay for expenses for emergency repairs as long as the repairs are needed to protect your property from further damage. Your landlord’s property and liability insurance does not provide emergency repairs for your things, only for appliances and other equipment they own inside or affixed to your apartment.
3. Medical Expenses
Sometimes when you invite friends, extended families and others to your apartment, accidents happen. You may have to pay medical expenses for the people you invite to your apartment, who become injured as a result of activities you arrange or conditions at the apartment, such as a broken step. Your landlord’s property and liability insurance will not cover medical payments to others on your behalf, and if you’re not prepared to pay those costs, you could suffer economic hardship. Renters insurance includes coverage for this. Ask your insurance agent how much a minimum coverage will pay out in medical payments, and purchase additional coverage if you need to.
4. Liability Lawsuits against You
The landlord has liability insurance due to negligence and intentional acts on their part. What about personal liability brought against you for damages due to injury or property damage? You can’t look to your landlord for help, as their property and liability insurance coverage does not cover your actions. You need your own personal liability insurance, especially for bodily injury. Damages can exceed ten thousand dollars, especially when you consider bodily injuries. Many renters don’t have that amount of money saved to pay for someone else’s injuries, and therefore you need renters insurance.
As you can see, your landlord’s property and liability insurance does not benefit you. It’s designed to protect them and the apartment structure and appliances. You need renters insurance to protect your personal belongings, and to cover you if lawsuits are brought against you for bodily injury or property damage.