Renter’s insurance offers several different insurance protections to tenants. Many renters forgo purchasing insurance thinking they are covered by their landlord’s insurance policy, or because they don’t realize how many benefits renter’s insurance can offer. Your landlord’s insurance does not cover your personal property or liability. It covers only structural damages done to the property. On the other hand, a renter’s insurance policy provides coverage against many different kinds of perils and can be customized to your needs.
Here are the types of damages and losses covered by a standard renter’s insurance policy:
Personal property
A basic policy covers your personal property against several types of damage and/or loss that should be listed in your policy. They are usually: fire, lightning, windstorm or hail, vandalism, theft, glass breakage, or smoke. Some natural disasters are excluded from coverage, like for example floods and earthquakes. However, you can extend your policy to cover these perils, as well.
It is important to mention the benefits of renter’s insurance are not limited to your home. If any of your personal items that you usually carry with you is stolen, like your cell phone or a laptop, your insurance will cover it.
Liability protection
Renter’s insurance provides coverage if you are legally liable for anyone’s injury or property damages that resulted from an accident on your property.
Increased living expenses
If your rental property becomes uninhabitable and you have to move out for a time, your policy will cover your additional living expenses.
Medical payment
Besides legal fees, a renter’s insurance policy also covers medical bills of the person(s) injured on the premises. However, this coverage does not include you or your family members living in your apartment.
Optional coverages:
Valuables – A standard policy offers limited insurance for such valuables as furs, jewelry, or firearms, but you have an option to purchase additional coverage for these items.
Vacation losses – Renter’s insurance may cover your personal belongings against theft or loss while traveling.
Identity theft – This is an option that offers help in resolving identity theft disputes and replacing some of your documents.
Other damages – Floods, earthquakes, riots, explosions, etc. are the types of damages that are excluded from the standard policy and require additional coverage to be purchased.
Replacement cost – Your basic policy covers your property at an actual cash value, which means that your reimbursement is based on the value of the items at the time of loss. If you prefer to be paid for the cost of replacing or repairing your items, you should choose reimbursement at the replacement cost. It is optional and usually costs more, but it is worth it especially if you own items that depreciate quickly, like electronics and computers.
Renter’s insurance can cover many types of damages and losses. Make sure you are familiar with your policy and find out how you can customize it to suit your needs. Having renter’s insurance will give you peace of mind, but most importantly it will help you to restore your lifestyle in case of a disaster.