If you’re on the fence about tenant insurance, it’s time to climb down. Here’s why tenant insurance is worth it.

1. Tenant Insurance Is Cheaper Than Buying New Stuff

So let’s address a renters insurance myth for the naysayers: You don’t own enough stuff to buy insurance.

You do. Think about your wardrobe, furniture, pots and pans, bicycle, laptop and all the things you rely on every day. What would you do if a fire wiped them out? Would you be able to afford to buy all new stuff? Even if you could afford it, would you really want to pay out of pocket?

If you’re not convinced, do a home inventory. It can be as simple as a written list or you could even take pictures or videos with your smartphone. A home inventory will give you a good idea of how much stuff you actually own and its worth.

2. Tenant Insurance Can Help Pay Your Legal Costs After an Accident

Accidents happen. Like a guest tripping over your rug and getting hurt. Or maybe you’re reliving your glory years and accidentally kick a soccer ball through a neighbour’s picture window.

That’s where the liability portion of your tenant insurance comes in. It covers accidental property damage and injuries to others. For example, if your dog bites someone, liability insurance can cover their medical expenses. It also pays for your legal costs, settlements and judgments if you are sued because of an accident.

If an accident happens and you are without liability insurance, you could be on the hook for medical expenses, property damage repairs and legal costs.

3. Tenant Insurance Can Pay for Temporary Housing

Suppose a problem covered by your policy makes your rental unit uninhabitable. The additional living expenses portion of your tenant insurance policy can cover expenses like hotel bills, restaurant meals and other services, like pet boarding or laundry services.

For example, if a pipe accidentally bursts and you can’t live in your home while your landlord makes repairs, you can tap into your additional living expenses coverage to pay for temporary housing.

4. Tenant Insurance Covers Minor Injuries to Others

Another overlooked aspect of tenant insurance is the voluntary medical payments to others coverage. It’s typically used to cover small medical bills, no matter who is at fault (or legally liable) for an accident.

For example, if your guest needs stitches after accidentally bumping their head on an open cabinet door, your medical payments to others coverage can pay for the trip to urgent care.

5. You Can Not Rely on Your Landlord’s Insurance

If a problem like a fire or theft occurs, you can’t make a claim against your landlord’s insurance to replace your personal belongings or pay for a hotel room. That’s because landlord insurance covers your landlord’s interest, such as the building structure and your landlord’s possessions, not yours.

Landlord insurance does cover accidental property damage and injuries to others, but that’s usually limited to accidents that happen in common areas. For example, if a guest hurt themselves on a staircase outside your apartment, that would typically fall under your landlord’s liability insurance.