A renter's insurance policy is really a homeowner's insurance policy that has been stripped of the dwelling and other structures coverage. It provides the same coverage for personal property, liability and loss of use as a home insurance policy, but does not cover you for the home or anything else built on the property. As a single parent, a renter's insurance policy could be the difference between a nightmare event and financial ruin.
If the home is destroyed by fire, a renter's insurance policy would cover your personal property. Even for a home of one adult and one or more children, the value of personal property in the home can quickly mount into the thousands of dollars, especially when you consider the cost of baby toys, clothing, and accessories on today's market. The dwelling itself may not be important to you, but replacing everything your family has could mean a devastating cash cost.
If someone trips on your rug and breaks a leg, renters insurance would pay the medical bills, and that person later sues you over the accident, it will also pay for your legal representation. Liability insurance for insurance and damages is an important part of renters insurance. It will also cover a neighbor's window if your daughter knocks a fly ball through it, or their mailbox if you knock it over backing out of the drive.
The cost of a renter's insurance policy is next to nothing when you compare it to the many different ways it can save you thousands of dollars. In fact, it can even reimburse you for the cost of dining, lodging or laundry if you are not able to use the home after a covered peril. Loss of use coverage alone could quickly add up to hundreds of dollars in savings. Make sure to save the receipts, and check the policy limits for exact amounts of coverage.