Types of damage and loss usually covered by renter’s insurance

Life happens and damages and losses can and do occur to renters’ personal property.  The owner of the rental property is required to have insurance to protect his losses caused by damage to the building.  His insurance, however, does not provide any protection for your losses.  That is the responsibility of each individual tenant.  What would you do if there were a break-in, fire or some other event that resulted in the loss of your property?The damage and losses covered by renters’ insurance include typical situations that can often arise while renting.

You may need more than the basic coverage depending on where you live. Factors, which you need to consider, include whether the property is near a flood plain or, is located in a seismic prone area. These conditions require additional coverage.  You may also need to increase limits or add riders if you wish to cover property that is very valuable.  These can be purchased for items such as jewelry and collectibles.  Considering these factors will make it easier to decide if you may need additional coverage, and will insure that you have the correct coverage to match your needs.

Theft is the number one thing most people are worried about in these hard times. With renter’s insurance, there is no need to worry because it is covered. If your property is stolen from your rental premises then your insurance can help pay to replace lost items.  Windstorms, fire, hail, lightning, and volcanic eruption are common forms of natural disaster that can result in losses of personal property, as well as damage to the premises.   If you incur a loss of personal property, then your renters’ insurance will help with replacement costs. 

If your apartment suddenly becomes uninhabitable due to water damage, fire, or property damage most renter’s insurance covers living expenses. This means is that your policy can help to pay for temporary housing while your rental is under repair. Most coverage limits are 30 to 40 percent of the total policy value.  Electrical surge damage, water damage from utilities, and damages incurred from the building are also common sources of loss.  The property owner’s insurance will only cover his losses; it will not pay for losses incurred by tenants. 

Renters insurance can help with replacement, cleaning and repair costs.  It will cover many of these costs up to a certain extent. Purchasing your own policy for these types of losses will insure that you are not left with huge expenses after Damage caused by explosions, vehicles, smoke and falling objects can often be covered as well.

 Liability protection is another great thing to have. If a guest hurts himself or herself on your rented property, liability will cover the cost of any injury up to your policy limit.  This will protect you from having to pay medical expenses and can protect your savings and earnings from possible lawsuits.