Renters insurance is important because it protects you from financial disaster if accidents happen. If your items get damaged or stolen, or if you become liable for paying for property damage or hospital bills due to an accident you cause, renters insurance will kick in and cover your costs.
In day-to-day life, it can be easy to think that nothing will go wrong. But if you’re suddenly on the hook for someone’s hospital bills, which could cost tens of thousands of dollars, you’ll be glad to be insured. Renters insurance covers $100,000 in personal liability costs by default, meaning you’d walk away with your pocketbook intact.
Similarly, the average renter owns $30,000 in personal property. It may not seem important today, but if your home is burglarized or destroyed by a freak fire, you’re going to want an insurance company to cut you a check so that you can replace your items.