Renters insurance protects you against financial losses if your home or belongings are damaged by a covered event. While you aren't legally required to carry this type of policy, doing so comes with a number of benefits that will save you money and provide valuable comfort and peace of mind. Unfortunately, many people have misconceptions about renters policies and the benefits they provide; some of the more common myths are dispelled below.

Common Misconceptions About Renters Insurance

1. Not Having Valuables Means Insurance Isn't Necessary

Most renters are surprised to learn that they have many more essential, valuable items than they initially assume. Go from room to room and make an inventory of all your possessions. Chances are that your list will be quite long, with many valuables that would be cost-prohibitive to replace if the need ever arose. A rental policy protects all items and helps pay for repair or replacement costs if they're damaged or lost in a covered event.

2. Renters Insurance Only Covers Possessions

In reality, a rental plan offers more comprehensive protection than just personal belongings coverage. Most policies also provide liability and medical coverage if someone is injured in your rental unit. They also include loss of use safeguards. If your home becomes uninhabitable due to a covered loss, such as a fire or natural disaster, and you must temporarily move out, the policy will help pay for lodging and meal costs until the rental unit is livable again.

3. The Landlord's Insurance Will Provide Protection

Your landlord's insurance policy covers the physical structure of the building, not an individual tenant's belongings, liability, and loss of use. Their coverage does not extend to things in your unit or events that occur in your unit. A rental policy's protection also travels with you. For example, if your wallet or laptop is stolen while you're traveling, the policy will pay to replace it. These are safeguards you don't get from your landlord's insurance.

When you need a comprehensive renters insurance policy, contact AiA American Insurance Agency. Since 1986, they have been serving clients throughout the Birmingham, AL, area. They are a full-service insurance agency providing renter, home, business, health, and vehicle coverage. Call (205) 940-9977 to request a quote or visit them online to browse their services.