While it may seem foolish to buy insurance if you do not own the building in which you live, this is not the case. In all likelihood, you do have valuables that would be expensive to replace if damaged, lost, stolen, etc. Furthermore, you definitely have potential legal liability, should someone injure him or herself on the premises you occupy, despite the fact that you do not own it. A Renter’s policy, therefore, is a way to protect yourself and your belongings. It is like a homeowner’s policy, except that it does not cover the building and structures, and consequently is considerably less expensive. 

 

Renter’s policies are typically not required by law or contract. However, some leases may require them so that the tenant has insurance to cover liability, in the event that someone is injured on the premises. Obviously, when reading a lease, you should look to see if any insurance is required.