Renters Insurance. Is it worth it?

Rodriguez Law Group, Inc.

Date: December 27, 2024

Renters Insurance is also known as an HO-4 policy.

Many landlords require tenants to carry renter’s insurance, but is it worth it?

Typical homeowners insurance policies do not cover the property or liability of a tenant living in a rental property.

That means you could be on the hook to cover expenses incurred in a property damage or liability loss. A landlord’s property insurance is not responsible for your personal belongings, but they are responsible for the structure and the grounds.

What are the benefits?

1. Protects your belongings. It covers personal property such as furniture, luggage, jewelry, computers, clothing, and electronics against many different perils.

2. Protects you from liability. It provides protection if someone is injured while in your home or if you accidentally injure someone. It also pays any court judgments and legal expenses up to the policy limit.

3. Helps with temporary living expenses. If your home becomes uninhabitable due to a covered peril, your policy may cover “additional living expenses,” including costs associated with living somewhere temporarily, food, and other things.

4. It covers your belongings when you travel. Are you a frequent traveler? You’re in luck because renter’s insurance covers your personal belongings while in your home, car or while you’re on vacation.

5. Is surprisingly cost-effective and affordable. A renter’s insurance policy on average costs between $15 and $40 per month. That’s less than $500 per year!

Is renter’s insurance worth having?

Yes! The benefits outweigh the detriments. Especially if you live in a structure that has multiple tenants.

At any time, another tenant can have an incident that affects your unit and your personal items.

You could have guests over and someone is accidentally injured in your home.

It’s best to protect yourself from things that are out of your control. It is important to note that renter’s insurance policies do not cover losses caused by your own negligence or intentional acts.

If you are uncertain, be sure to check your policy or ask your agent to explain what items and instances are covered.

If you have legal questions or need representation, contact us at 626-888-5206. We can guide you through your personal injury, property damage, real estate, landlord, and civil defense matters.

Disclaimer: This is not legal advice but general educational material. This does not create an attorney-client relationship. You should consult an attorney in your locale.