6 Reasons Not To Skip Renters Insurance Personal finance

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A homeowner’s policy is also unlikely to help you if you accidentally damage a neighboring apartment. “If you [let] your tub or sink is spilling out of the apartment below you, the landlord won’t cover that, ”says Jeff Schneider, president of Gotham Brokerage Co. in New York City. “You can be sued for… causing damage to the apartment below you. “

A standard tenant insurance policy includes liability coverage starting at $ 100,000, which can cover damages and legal costs if you are sued for accidentally injuring someone else or damaging their property.

2. You probably own more than you think.

“[One] The reason people avoid home insurance is the thought, “I have nothing valuable that is worth protecting,” Wissner-Levy said. But you might be surprised.

Brandon Okita, vice president of FIA Insurance Services in Torrance, Calif., Advises opening every drawer and closet in your home to take inventory of your belongings. Once you start calculating the value of each item – electronics, jackets, shoes, etc. – you will probably find that it would cost a lot more than you expected to replace everything.

3. Renters’ insurance can pay for housing after a disaster

“Most policies offer what’s called ‘loss of use’ or ‘additional living expenses‘ compensation,” says Schneider. “It pays you if you are forced to leave your apartment following a major disaster – usually fire or major water damage – and you have to stay in a hotel. “


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