If you’re searching for a rental property, you may be surprised to find that your landlord is requiring you to carry a renter’s policy. It may seem like an unnecessary expenditure. After all, you don’t own the property. In reality, there are good reasons why you should spend the money to carry a renter’s policy, even if the landlord doesn’t require it.

Why Do I Need Renter’s Insurance?

Your landlord, of course, will have the property insured. But the landlord’s policy covers only the dwelling itself – it doesn’t offer coverage to your personal possessions. A renter’s policy will insure your possessions if they’re stolen or damaged. It will also cover your legal fees if you accidentally damage the property you’re renting. In addition, a renter’s policy will cover medical bills if a guest to your rental is injured and may even cover living expenses if your rental becomes uninhabitable due to an event such as fire while the property is undergoing renovations.

Your landlord may require you to carry a renter’s policy because it lowers their own insurance liability. If, for example, you accidentally start a fire in your unit, your policy and not theirs will cover repair from fire damage. While the landlord is responsible for repairing your dwelling, they are not responsible for replacing your belongings.

Is Renter’s Insurance Required by Law?

While no state has a mandatory renter’s insurance law on the books, most states will back landlords who require these policies for renters. By signing the lease that states renter’s insurance is mandatory, you have agreed to abide by the binding rules of a contract, so you are legally obligated to follow those rules.

Penalties for Non-Compliance

In the fine print of your lease, you will probably find that the landlord can levy fines for non-compliance with the rule in your contract that required you to carry renter’s insurance, or even evict you. Before you sign a lease, read it carefully and be sure you understand the requirements for renter’s insurance, and what the penalty is for non-compliance.

Renter’s Policies Exist to Protect You

While you may not wish to pony up even more money – after all, you’re laying out a lot of cash already for the rental – think of a renter’s policy as a means of protecting you, your belongings, and your guests.

Talk to an Insurance Agent

If you’re not sure whether you need a renter’s policy, or you need guidance in customizing a policy that will work for you, consult with a licensed insurance agent. Renter’s insurance policies usually have adjustable coverage terms and limits so they are easily customizable to you can pay for only what you need. In Connecticut, Petruzelo Insurance offers personal and business policies, including renter’s insurance, that fit your needs. Call us at 866-479-3327 or visit our website for more information.