Example: The Accident in the Bathtub Picture yourself watching a movie in your living room when you suddenly hear water dripping.
A portion of your ceiling opens up as you walk toward your living room, allowing water to begin pouring in.
Everything in the area, including your television, is soaked. You contact your insurance company to learn more.
Because you are covered by insurance:
They will pay for the cleanup costs.
During the renovation, they will pay for you to live in a hotel.
They will pay you back for things like your TV that you lost or damaged.
You would be responsible for all of this if you did not have renters insurance. You might also get into a fight with your landlord or neighbor as everyone tries to find someone to pay for their losses.
