Is Renters Insurance A Waste Of Money?

Most landlords and residential leases in this area require a tenant to take out renters insurance during the tenancy period. To sometimes cash-strapped renters this may seem like an extra cost they don’t really need. Besides, you are paying rent – why shouldn’t the landlord take care of insurance? It is after all their home!

The homeowners fire and liability insurance covers the structure and his or her liability in case of injury. Most would agree this is very useful and well worth the expense. Adequate insurance is required by  lenders to protect their collateral (the home) and is often paid by the lender to ensure the coverage is adequate and premiums are paid.

Renters insurance on the other hand may seem less important. It isn’t. Besides covering the personal belongings of the tenant like jewelery, laptop computers, furniture, clothing etc (that is NOT covered by the landlords homeowner insurance) it may also offer liability coverage. Liability may cover you if someone is accidentally injured on the property. The landlords insurance will cover him/her, but not necessarily you.

The lease may require you to purchase renters insurance but few landlords actually insist on a copy of the paperwork. In the end it is in your own best interest to purchase one and making sure it adequately covers you and your belongings. Just imagine it being your home going up in flames and you not having adequate insurance…’

This article was written by Are Andresen of Soldsense Realty LLC. Soldsense is a real estate firm licensed in Virginia and Maryland and has an office in Vienna, VA.

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