Many renters have a common misconception. If something happens on a rental property, the landlord handles any damage to your belongings, or even at fault for any injuries that result.
The truth is, the insurance the landlord has on the rental unit does not cover you as a renter. It only covers the unit itself.
This is just one reason anyone who rents any type of dwelling should seriously consider renter’s insurance.
What is Renters Insurance?
Renter’s insurance is a type of personal insurance which covers a tenant’s personal property if it’s destroyed or damaged.
This damage can occur during a storm, break-in, or other event specified in the policy. It can also provide coverage when a guest gets injured on your property.
Finally, if there’s a catastrophic event, like a fire, which forces you to move out of your units, a renter’s insurance will cover the extra living expenses.
This means it’ll pay for things like hotel bills, or an alternate place to stay.
For the value it provides, there is no better bargain in the insurance world than renters. Despite this fact, there is a good percentage of renters who do not take advantage of it.
What Can it Cover?
Renter’s insurance covers all the policyholder’s personal property.
This includes:
- Clothing
- Furniture
- Jewelry
- Electronics
- Towels
- Bedding
- Hobby equipment
- Sports equipment
Renters insurance also offers liability and relocation coverage.
In other words, it covers your expenses related to loss resulting from accidents that occurred on the rental property.
It also pays for living expenses for you and others if it forces you to move temporarily because of a disaster.
Commonly covered events include:
- Fire
- Smoke
- Theft
- Explosions
- Lightning
- Natural disasters
- Water damage from internal sources like plumbing or leaks from a neighboring unit
Standard Renters Coverage Policy
| COVERAGE | (Renters Coverage) |
| Dwelling – Coverage A | No Coverage |
| Perils Covered | |
| Valuation: | |
| Other Structures – Coverage B | No Coverage |
| Contents – Coverage C | Amount Purchased |
| Perils Covered | Named Perils |
| Property Exclusions | More Information |
| Valuation: | |
| Actual Cash Value | Yes |
| Replacement Cost | Can be Purchased |
What Does it Not Cover?
Renter’s insurance covers many circumstances and objects, there are certain things it doesn’t cover.
They include:
- Built-in appliances and other fixtures
- Floods from either weather or external water sources
- Earthquakes
Are there Policy Limits?
Any policy limits get determined by the amount of coverage you have.
If you only have the bare minimum required by the owner, you can expect low coverage. This might be adequate for your needs, but if you get more, you can expect more from your Insurance Company.
Renter’s insurance serves to protect the renter if any unforeseen disasters occur. It goes above and beyond what the typical landlord’s insurance policy offers.
It ensures your personal belongings and loved ones are safe should anything happen. It also gives you something you can’t put a price tag on—peace of mind.