While owning a home is still a very big part of the American dream, more people in today’s world are renting rather than buying. The reasons for this are numerous, such as wanting to save up enough money before purchasing a home, liking the flexibility to pick up and move quickly if needed, and other various reasons. However, one thing we’ve discovered along the way is that while over 95 percent of homeowners have insurance, less than 40 percent of renters choose to purchase insurance to protect themselves and their belongings. With home ownership in the U.S. at a 51-year low, we can’t stress enough the importance of having renters insurance. If you’re still on the fence and wondering why this type of insurance is important, here are seven benefits associated with renters insurance.

Additional Living Expenses Coverage 

One thing we have discovered over the years here in Redding and other areas is that when people are displaced from their rental property due to a natural disaster, fire, or other related reason, they often scramble to find another place to live . But for those who have renters insurance , this becomes a far easier process. Since renters insurance covers what are known as “additional living expenses,” it will provide reimbursement for hotel costs or renting another apartment.

Medical Expenses for Guests 

If a guest is injured while at your apartment, renters insurance will pay for the medical expenses up to the policy’s limit. To be safe, we recommend buying a policy that has a limit of between $1,000-$5,000, which is a typical range for these policies.

Damage Caused by Children 

Even if you have the most careful kids in your apartment, we know accidents are bound to happen. This is another advantage of having renters insurance since it offers liability insurance that covers various injuries or property damage caused by children or other family members. So if your child accidentally breaks a neighbor’s rare and expensive antiques, renters insurance will cover the costs.