Consumer Reports says ‘YES’ -- get renters insurance

Yes, people who own homes need homeowner’s insurance, and Consumer Reports says, yes, people who rent their homes need insurance too.

Amani Elsawah was glad she had renters insurance. When the deep freeze hit Texas in February, Elsawah was one of millions of people who lost power and suffered water damage when her frozen pipes burst.

“I was so shocked because it was literally raining in my apartment,” she said. “It was gushing out so much that it started flooding almost immediately.”

The damage was so bad, Elsawah was forced out of her home.

“I had to leave my apartment and find somewhere dry and safe to go,” she explained.

Since then, Elsawah has been living in a hotel, and the bills are adding up.

Fortunately, she has renters insurance, which will pay some of her living expenses and help cover much of what she lost.

Her policy costs about $20 a month -- money well spent according to Consumer Reports.

“Renters insurance can provide an important safety net if something happens,” said Consumer Reports Money Editor Penny Wang.

CONSUMER REPORTS | Why you should buy renters insurance

Aside from helping cover damage or theft of your property and reimbursement if you’re forced to move out, insurance offers liability protection if someone is injured in your home. It can also cover some possessions when you’re not home -- like if something is stolen out of your car.

But like any type of insurance, Consumer Reports says it’s important to check the policy carefully.

“Renters insurance is fairly standardized, though coverage can vary based on the insurer and where you live. Bottom line: Make sure you understand your policy --what’s covered and what’s not,” said Wang.

Consumer Reports suggests getting several quotes to make sure the policy gives you what you need—whether that’s a low deductible, additional coverage for your valuables, or, like Elsawah, a stay in a hotel if your apartment is damaged.

“You don’t know when you’re going to need it until you need it. And then once you need it, you’re glad that you have it,” said Elsawah.

Consumer Reports also recommends doing a home inventory before disaster strikes. That can be as easy as taking a video of important items in your house. Find step-by-step instructions for your home inventory here: Why You Should Do a Home Inventory Now - Consumer Reports