I recently discussed in the past on my blog that everyone who rents an apartment or a house should have renter’s insurance. A landlord’s insurance will only cover what a landlord owns, and will be limited to the land and the physical structures on the land. Any of your personal property, will not be covered by your landlord’s insurance company.
I would note that damage from an earthquake or flood will likely not be covered. In fact, any hazard that is not specifically mentioned, like water damage from faulty plumbing, if it is not specifically stated in your policy, will not be covered. In addition, if you own something valuable, like jewelry, artwork or antiques, you will need additional insurance specifically covering the special item.
People often ask how much renter’s insurance should they purchase. The answer depends on how valuable are your personal belongings. $2,000 would be sufficient for some people, while $100,000 would not be enough for others. You might want to do some research into how much your possessions are worth before you determine how much renter’s insurance you need. Some possessions, like antiques, may require an appraisal.
In addition, you may want to inventory your most valuable possessions. It would be helpful if you took photos and kept purchase receipts. The inventory should be kept outside your home so they are not destroyed by whatever happened to the rest of your belongings.
Renter’s insurance is well worth the cost should something happen to your home.