Is renters insurance worth it? 
When you rent a property , you can buy renters insurance . These policies protect you in two different ways . First , if the belongings in your rental property get stolen or destroyed , the rental insurance will replace them . Second , if someone gets hurt in your rental home and sues you , the rental insurance will protect you . By offering both these areas of coverage , a renters insurance policy is worth its cost . Whether an insurance policy is worth buying depends on the size of the risk it is covering . You want to insure assets that you couldnt afford to replace on your own . This is why you would buy insurance on your house but not on a $ 20 pair of pants . If renters insurance just covered your belongings , it would be a close call . Renters insurance is fairly inexpensive but replacing your personal property is a fairly low cost . While its nice to have all your belongings protected , this is the type of risk you can insure yourself with your own savings . The potentially greater value of rental insurance is its liability coverage . If someone sues you and wins a judgement , you can potentially lose everything you own . By making a small investment in renters insurance , you protect yourself against the rare but catastrophic risk . When you consider both sides of renters insurance , this coverage makes sense . By making this small investment , you make sure that your rented home wont ruin you financially . 