Many renters assume that because they don’t own their own home, insurance is unnecessary. But renter’s insurance is much like car insurance, renters determine how much coverage to buy and then pay a deductible amount out of pocket each time you use it. Just as most drivers wouldn’t hit the road without coverage, you shouldn’t even consider signing a lease without coverage. Here’s 5 real-life scenarios which made these renters think twice about insurance coverage:

Does Renters Insurance Cover ThisMay 24, 2010: Sarah came home from work to find the toilet in her apartment had overflowed. The landlord caught the problem and fixed the toilet right away, but water had already seeped into Sarah’s living room ruining her laptop, TV, and entertainment center. All in all, Sarah lost about $2,000 worth of property.

In this scenario, Sarah had renters insurance and she had to pay a $500 deductible, and then was completely reimbursed for the $2,000 value of her lost items.

February 3, 2008: Gary had a few friends come over to watch the Super Bowl. On their way out, his friend Scott tripped on the stairs and twisted his ankle. This simple slip ended up costing him $350 for an emergency room visit.

Unfortunately, Gary didn’t have renter’s insurance. If he had, he could have filed a claim and covered Scott’s medical bills. Now Scott is upset over his ankle, and refuses to watch the games at Gary’s apartment.

October 31, 2011: Emily hosted a Halloween party with friends. Some people brought others who Emily wasn’t familiar with, but everyone seemed to have a great time and the party was deemed a success. The next morning, Emily finds her $629 iPad gone. Turns out it was stolen by someone at the party, along with an mp3 player and her Kindle.

Emily immediately called her renters insurance company and was able to replace her items without paying the over $1,000 price tag it would be without coverage.

August 15, 2010: Troy was on his way home from the gym when he stops at the gas station for a quick snack. He leaves his car for only a moment and by the time he gets back his car is smashed in and his iPhone is gone.

Troy was prepared for this incident with both auto coverage and renter’s insurance. His auto policy repaired the broken window without any trouble, and the renter’s policy replaced the stolen phone.

November 26, 2012: Nancy was busy cooking Thanksgiving dinner for her family when her parents showed up. While she stepped away to answer the door, the dish towel she sat by the stove is in flames. Nancy was able to quickly put out the fire, but not before it burns the wall and some of the kitchen cabinet doors.

Nancy’s landlord was prepared for this type of incident by requiring all tenants to carry renter’s insurance. Because Nancy had the policy, the cabinets and wall were replaced quickly and with minimal cost to her.