Renter's Insurance: Do You Need It, And What Does It Cover?

Moving into a new apartment requires a lot of expenses, and some tenants think renter's insurance is a luxury they can't afford. Equifax blogger and insurance expert Linda Rey breaks down what renter's insurance covers, and why it's worth talking to your agent about.

She tells the story of her clients who came to her with deer-in-the-headlights looks after a fire destroyed half their apartment building. Luckily, they had renter's insurance, which came as a huge relief to the couple. Here are some reasons Linda Rey gave them for buying renter's insurance, and why it's a solid investment for many tenants. Renter's insurance covers:

1. Your stuff. Renter’s insurance provides coverage to protect the contents of your home. It can cost a lot of money to replace your clothes, books, electronics, furniture, and all the little things in your closets and cabinets.

2. Your liability. You are responsible if someone is injured while visiting you in your home. If your friend expects her medical expenses to be paid for, or worse, sues you, your renter’s insurance (or homeowners’) policy would respond with a lawyer and a checkbook to settle the suit. For more information on renter's liability, click the link to the full story below.

3. Loss of use. If a covered claim (an incident covered by insurance) causes you to move out and seek alternative living arrangements, there is coverage for that in most standard renter’s insurance policies.

To read more of Linda Rey's reasons to consider renter's insurance, including how you can get a discount on a policy, visit her Equifax insurance blog at http://insurance.equifax.com/2010/10/renters-insurance-do-you-need-it-and.html