If you are currently renting an apartment or house, you may think that you do not need renters insurance. You are not responsible for the dwelling you live in, so why should you pay additional money for insurance? Less than half of all renters pay for renters insurance, as they do not find the additional cost necessary. You may want to think twice, because for a little under $200 a year on average, you can receive all of the following benefits.

Personal Property Protection

You may not be responsible for your rental home if there is a fire or natural disaster that ruins the structure, but the owner's home insurance policy will not cover damage to your personal property. If you think about how much value all of your personal property has, in a total loss situation it can be completely devastating to lose it all. Renters insurance will cover the replacement of these items.

Renters insurance can extend beyond the home you are living in too. Some policies will cover personal property in your car if it is stolen, and even provide theft coverage while you are on vacation.

Emergency Living Expense Protection

If you do find yourself in a situation where your rental property was involved in a natural disaster or fire, you will be forced out of the home temporarily while the damage is being repaired. During this time, you would normally be responsible for paying for your own additional living expenses.

By having renters insurance, it will cover all your unexpected costs of having to move out of your rental home. This included living expenses above your norm, such as hotel bills, restaurants, and even additional transportation cost.

Liability Protection

Another benefit of having renters insurance is that it covers if someone is injured at your home and sues you for damages. For example, this would include if someone were to trip and fall down the stairs while leaving a walk up third floor apartment. In this situation, renters insurance would cover all the legal costs, as well as medical bills of the victim if you are found guilty.

It will even cover accidental damage to another person's property. The story of a baseball getting hit through a neighbors window is all too common when you have kids, but you will be protected in the event that it does happen.

Purchasing renters insurance will cover you in any of these situations, and the policy will pay for itself many times over when it comes time to use it.