If you are a renter, whether it is a house or an apartment, it is important to have renters insurance. A misconception many renters have is that when they are renting a property, the landlord’s insurance will cover any damages that occur. This is simply not true. A landlord’s insurance policy will only cover damage to the structure of the property; it will not cover any damages to your belongings due to fire, flood, water damage, theft or any damage caused by a natural disaster. The landlord also cannot be held responsible for damages to any of your personal belongings.
What is renters insurance?
Renters insurance is an insurance policy that protects you, your guests and your personal belongings from accidents and/or catastrophes such as floods or fires. The building is insured by the owner of the property, so anything on the inside that belongs to you is your responsibility.
What does renters insurance cover?
There are several different types of renters insurance available to choose from. Basic personal property renters insurance typically covers your personal belongings including clothing, furniture and electronics if they are damaged due to situations such as hail, vandalism, fire, plumbing malfunctions, etc.
Does Renters Insurance Cover Injuries?
If you choose a type of renters insurance, known as personal liability protection, if someone is injured while visiting you, the policy will cover legal costs and damages relevant to the incident. The minimum amount of personal liability coverage typically starts at about $100,000; however, there are many options to choose from.
Additional Living Expenses
Another policy that you may want to consider is one that covers additional living expenses. This policy will cover your living expenses if your rental home becoming uninhabitable or during repairs. The policy will cover hotel bills, restaurant expenses and other additional expenses that occur if you are forced out of your home due to unforeseen damages. An additional living expenses policy usually covers between 30% and 50% of the renters insurance coverage amount; for example, $100,000 in renter’s insurance with a 30% additional policy would cover up to $30,000 in living expenses.
How do I purchase renters insurance?
You can purchase renters insurance through almost any certified insurance company or representative. After discussing which type of coverage and deductible is best suited for your needs, you will pay a monthly payment that matches the policy you have chosen.
Is renters insurance expensive?
No, renters insurance is not expensive and you can receive a free quote on renters insurance from Insurance Town. The amount of your monthly payment will depend on the amount of coverage you have chosen. The monthly premium costs are usually well under $50, and you will have peace of mind in knowing that you are covered should anything happen.
In case you ever need to make a claim on your renters insurance policy, you will need to know exactly what items were damaged or stolen. Making a list of your belongings, along with the serial numbers from all of your electronics, and storing the information in a fireproof box is a very good way to prepare for the unexpected.
Jeff Mathis is a part-time blogger who writes on the subject of insurance. His articles mainly appear on personal finance and insurance based blogs and websites.