You're hosting a party. You've taken great care to send out invitations, clean and decorate your place, prepare food and drinks for your guests and queue your stereo with all your favorite party songs. As your guests start arriving, you begin to think you may well be hosting the event of the season. Then it happens. One of your guests who may have had one too many cocktails trips over an ottoman and falls to the ground, landing heavily on his wrist.
As he cries out in pain, you stop the music and attend to your injured guest. Suddenly, the party's over and you find yourself in the hospital waiting room. The doctor soon confirms what you had suspected; your friend has broken his wrist.
Even though there was no way you could have foreseen this unfortunate event and it may have been attributed to your guest's clumsiness or inability to better handle his alcohol, the fact is you are liable for the safety of your guests the moment they enter your home. If you had a renters insurance policy, you would have the liability coverage you need to help pay for your injured guest's medical bills.
Most renters insurance policies provide coverage for accidents and injuries that occur in your home, as well as accidents that occur outside of your home that are caused by you, your pet or your property. (Please note this does not include car accidents.) The liability coverage contained in most renters insurance policies includes legal defense costs, if you are taken to court over such an accident. You can typically select between $100,000 and $500,000 of liability coverage.
What About My Landlord's Homeowners Policy?
There is a common mis-perception among renters that they are covered under their landlord's homeowners insurance policy. However, this is not the case. Most landlords' policies only cover the common areas of the building and its infrastructure.
Why You Need Renters Insurance
Not only does renters insurance provide liability coverage, it also provides coverage for your belongings from theft and damage and destruction from fire, lightning, smoke, windstorm or hail and vandalism while living in a rented complex. You may think that you don't have enough stuff worth insuring. But if you look around your home and start taking a mental inventory of your furniture, computer and electronic equipment, clothing, CD and DVD collections, your bike, etc., the cost to replace all your personal property really adds up. In addition, some renters insurance policies will even cover your living expenses if you're forced to live elsewhere due to a covered loss.
Renters Insurance Is Affordable
Renters insurance policies typically only cost between $15 and $30 a month (NAIC.org). When you consider all the protection you get with a renters insurance policy, renters insurance is very good value.