Do I need to buy renter’s insurance?

Am I covered under my landlord’s policy?

Do I need to buy renter’s insurance? So many renters ask if they need to buy renter’s insurance that we feel it needs a clear and definitive answer. If you’re like me and many others you hate paying for any kind of insurance. However, renter’s insurance is something all renter’s should at least consider. While most people believe any loss to their personal belongings will be covered under your landlord’s policy, this is generally not true. The only time a landlord can be held liable, under New York Law, is if the landlord was “aware of a prior hazardous condition, failed to correct it in a reasonable time frame and your property was damaged”. Many states have similar provisions.

Most losses occur due to fire, smoke, water damage, theft, lightening, wind snow, rain . While under some circumstances you may be covered if it was a result of the landlord’s negligence.  Your policy will generally not generally cover flooding (go to National Flood Insurance Program) and some exclude hurrican damage. Policies many times have a deductable which mean that the insurance company will only pay for things that exceed that amount. Also if you run a business from your home and have expensive equipment ask how much of that will be covered. They sometimes cap these losses.

For a basic policy, covering around $50,000 worth of property, the premium will be a few hundred dollars a month. Many times you will get a discount when you buy it through your car insurance company. While it covers loss of belongings it usually also usually  provides temporary housing and some liability protection. So if your rental premises becomes uninhabitable they will pay fo housing or if someone is injured on your property they will provided for medical expenses or pay for  lawyer if you are sued and cover any court award against you (up to a certain amount).