Is There a Greater Need for Renters Insurance Based on Where You Live?

While the majority of homeowners purchase home insurance policies, there are renters who do not opt to purchase renters insurance to cover their personal property within the rental space. While some geographical locations are more susceptible to break-ins or natural disasters, anyone renting a place to live should have renters insurance.

If you’re renting property, you should have a renters insurance policyAccording to a September 2013 article in U.S. News Money written by contributor Sienna Kossman, many experts say there isn’t a scenario where renters insurance is unnecessary; all rental properties are susceptible to theft, broken appliances and other damage, such as from fire or water.

What’s more, unlike other insurance policies, like health or auto insurance, renters insurance is very affordable and can even be bundled into an existing insurance policy for a discount.

“A basic renters insurance policy—with $10,000 in personal property coverage and $100,000 in liability coverage—costs about $120 a year through Allstate and State Farm. But even if you bump up both of those coverage levels, renters insurance should still run you less than $200 annually,” reports an August 2012 article in the Washington Post by contributor Beth Luberecki.

Living places with a greater need for renters insurance

Although everyone who rents a place to live should have renters insurance, those living in apartment buildings or complexes are in greater need than are those in any other living situation. Renters insurance covers not only you but also the rest of the building should you cause damage.

“For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor’s furniture or rug, your renter’s policy will cover the damage up to your liability limits,” says Liberty Mutual property insurance expert Emily Lyons in a September 2013 article in U.S. News Money.

Here’s another example of why renters insurance is extremely important to have if you live in an apartment: If you accidentally leave the stove on and cause a fire, any damage to the building will be your sole responsibility. The costs without insurance will quickly escalate, especially with a large number of affected apartments in the building.

Another indicator for greater need is your proximity to family or another type of support group to help you if your property does get damaged. If you live in an area far removed from friends or family, and need somewhere to stay for the long term while repairs are made to your living place, renters insurance will cover the costs of staying in the new place. Some policies dictate a cap of expenses covered, while others determine the coverage with a time limit, such as six months. Without renters insurance, you’d be responsible for paying for your temporary housing needs, on top of the repair costs.


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