According to a recent survey conducted by the Insurance Information Institute, 91% of homeowners carry home insurance while only 46% of renters have coverage. If you’re one of the many tenants who has overlooked the importance of renters insurance, this can turn out to be a costly mistake. Just because you don’t own your residence doesn’t mean you aren’t vulnerable to financial loss should disaster strike. The following information helps explain why you need adequate protection. 

Why It’s Important 

In some cases, you may have to purchase renters insurance before your rental application is approved. It has become increasingly common for landlords to make this a requirement, as it helps minimize their risk of getting sued by a tenant who suffers injuries or property damage.

However, even if you aren’t obligated to get coverage, it’s still a worthy investment. Without it, you would be responsible for paying out of pocket to replace your belongings in the event they’re damaged or stolen. A landlord’s policy is only designed to cover the building if something goes wrong.  

What It Covers 

Aside from covering your personal possessions, renters insurance offers liability protection. This will pay for the resulting losses if another party is injured while visiting your rental, your dog bites someone during a walk around the block, or a neighbor’s property is damaged because you accidentally caused a fire or flooding. This policy would also reimburse you for additional living expenses if you’re forced to find temporary housing after a disaster has made your residence inhabitable. 

To learn more about renters insurance and your coverage options, turn to David Seagraves Insurance Agency. He’s committed to helping residents in Lakewood, CO, and the surrounding communities find the protection they need to secure a healthy financial future. As a Farmers® agent, he can offer you a variety of quality products from one of the nation’s most reputable carriers. Call (720) 588-8002 to begin customizing your policy, or visit him online to request a free quote.