We read all the personal finance news for you. Then we tell you what you need to know.

You Probably Need Renters Insurance

I’m living pretty dangerously while interning at FiLife this summer.

I confess: I rented an apartment for the summer and… I did not get renters insurance. This was foolish for several reasons.

1. My laptop is by far the most valuable thing I own. Yet I usually leave this prized possession lying on my bed in my walk-up three bedroom apartment. I just cross my fingers that my roommates will remember to lock the door when they leave.

2. My culinary skills aren’t great. I started a small microwave fire once…or twice. If one of these fires ever gets out of control, I’ll be responsible for destroying the valuables of everyone else who lives in the building, in addition to my own.

3. I really should have learned in my first year of law school that if a visiting friend falls down the stairs and hurts herself, she can sue me.

Luckily, none of these things happened while I was uninsured. I plan to take out a renters insurance policy when I move into my new place this fall.

So how do you know if you need renters insurance? It’s pretty safe to say that if you’re a renter, you need renters insurance.

Most landlord’s policies only cover damage done to the actual building. Often times these policies don’t cover damage incurred by the tenant. So if something goes wrong, it’s probably you - not your landlord - who’s responsible.

Don’t assume that you and your belongings will be covered by your parents’ insurance policy if you’re a student living in a dorm or an apartment. As Ali, our Real Estate Guru, pointed out, that’s not always true. Review your parents’ policy to be sure that you’re covered—you don’t want to find out that your valuables weren’t insured after they’re stolen or destroyed.

If you’re living in a university dorm, don’t assume your school has got your back. Most colleges and universities don’t assume liability for personal property that is damaged or stolen. Contact your school’s housing department for specifics. Even if they don’t cover your personal property, they can suggest insurance companies such as CSI Insurance Agency and National Student Services Inc., which offer policies especially designed for university students.

Still debating whether you really need renters insurance? It may be useful to take inventory of your belongings and estimate their net value. State Farm offers a spreadsheet that will help you generate a list of all your stuff. Check it out here.

Once you’re convinced, shop around to get all the coverage you need with the lowest possible premium. Check out our listing of renters insurance providers here.

– Vanessa Durante

Image Credit