Renting can be very expensive. After you pay your rent and other monthly expenses you likely don’t have a lot of cash left over.

That’s why many renters neglect getting tenant insurance.

They rationalize that they’ve gone this long without insurance, and nothing has happened. But what if the unlikely does happen, like a fire in your apartment or another tenant’s suite? Like the saying goes – Better safe than sorry. There are a few key factors to consider when deciding whether to get renter’s insurance and what kind to purchase.

Your landlord’s insurance does not cover you or your personal belongings.

This is the most commonly held misconception about insurance. Most renters think their landlord’s insurance will cover them if there’s any damage to the contents of their apartment. But if there is a fire in your apartment or adjoining suites, the landlord’s policy only covers damage to the building, not your personal possessions.

If you’re properly insured, you’re covered

However, if you’re not insured, your expenses for a hotel room, new clothing, furnishings and food come out of your own pocket. Once you start adding all these up, you'll find that you’re out of pocket quite a large sum of money.

Basic insurance coverage is great, but it is likely not be enough.

Some people opt for the cheapest basic tenant insurance available, but in most cases, it is far from enough coverage in the event of a loss. Once you’ve added up the cost of replacing all your furniture, dishes, pots and pans, televisions, electronics, jewelry, food and clothes, you’ll realize how expensive replacing all your items will be.

Your personal possessions cost more than you think, and without comprehensive tenant insurance, some or most of your losses aren’t covered.

Not all insurance policies cover your losses equally.

When shopping for an insurance plan, make sure you are choosing one that is suited to what you own. A comprehensive policy is best.

If you have a lot of expensive jewelry, family heirlooms or unique pieces, you want to choose a comprehensive insurance plan that will cover the replacement cost for all of these items.

If you’re unsure about the value of these items, get them appraised. Make a list of your valuables and take pictures of your belongings and attach a value to each. This will give you a good idea of how much insurance you require. Then speak to a reputable insurance agent to get the right policy for you.

Invest in piece of mind

Nothing prepares you for a situation where you lose everything you own. But having the right insurance coverage is money well spent. If the worst-case scenario does occur, you’re covered for all of your losses.

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