Financial Friday: Why Do I Need Renters Insurance?

HUNTSVILLE, Ala. (WAFF) - Can you afford to replace your laptop if it’s stolen or buy new houseware if your kitchen goes up in smoke?

These are things to think about if you don’t have renters insurance. We spoke with an insurance expert who explained why it’s important and surprisingly how affordable renters insurance is.

Tyler Brennen is an Insurance Specialist at Redstone Insurance Services. He says there are different policies and explains how they’re different.

Personal Property: Renters insurance is a very affordable way to cover your personal property. With renters insurance, you are able to choose how much coverage you would like for your personal belongings; clothes, furniture, knickknacks, etc. Some policies also cover your belongings away from home.
Personal Liability: If you let your bathtub or sink flood out the apartment below, you could be responsible for covering those damages. The landlord is not going to cover that. You can be sued to recoup those damages. Renters Insurance covers your liability. It can cover the damage or injury you cause to others and their property.

When do you need renters insurance?

Anytime you are renting a property – most apartment and property management companies require renters to carry 100K or higher in renters liability insurance
Many apartment complexes offer a renters insurance program through their property management company. Please, please, please, read the details of the policy or you may find your personal property is not covered nor any damage you cause to others.
Staying with friends and family – unless you are under the care and custody of the homeowner, more than likely, your personal items and liability will NOT be covered under the homeowner’s home policy.

For more ways to save, be sure to tune in at noon every Friday for WAFF 48′s “Financial Friday” segment.