Imagine that you receive a call at work one day from your landlord informing you that there has been a fire and that your apartment has been destroyed. Apparently your neighbor forgot to turn off the stove and caused a fire in your building. Everything that you own has been destroyed. The Red Cross has offered to put you up in a hotel for the next three nights, but unfortunately your landlord does not have any others vacant apartments ready to move you into within the next three days. The property manager asks you if you have renters insurance and you respond, no. You had meant to call your insurance company, but never got around to it. She politely informs you that the apartment community where you live is not responsible for any damages to your personal belongings, regardless of who is at fault. You check the fine print of your lease and see where this is stated clearly.
Most renters do not realize that most apartment communities and landlords are not responsible or required to replace your personal belongings in the event of a catastrophe. Even more importantly, most renters do not understand that if they accidentally cause damage to their rental home that they are financially responsible for the damages. This is where having renters insurance is important. It protects you in these unfortunate circumstances.
Your insurance agent can go over the details of purchasing one of these policies. This will cover you in the event of fire, a flood caused by plumbing failures and theft. Not only will the insurance company cover the cost of your personal belongings, they will also usually pay for accommodations while your waiting to get back into your home. If you accidentally cause major damage to your rental home, such as a fire, this type of policy will cover the cost of damages to your landlord.
We never anticipate having to use insurance, nor do we wish to find ourselves in a situation where it is needed. However, when we do, were glad that we made that call.