When you rent a home like the over 100 million other people in the United States, you run the risk of losing personal property when you face a natural disaster, a fire, or theft.
Renters insurance solves this problem. Renters insurance coverage pays you back for your losses when your rental home goes up in smoke or a would-be thief takes your personal property from your rental property.
Keep reading to learn how a renters insurance company can provide you with peace of mind as well as compensation when the unthinkable happens.
What is Renters Insurance Coverage?
Renters insurance coverage is an insurance policy that protects you much like a homeowners insurance policy does, except you do not own a home. If you are renting an apartment or a house, then the renters insurance policy will cover your loss of belongings and protect you from liability.
What Is Covered Under Renters Insurance?
Your local renters insurance company will offer you typical renters insurance service. This means they cover your personal property and liability along with a few other goodies.
If you are renting a place to live, take out a renters insurance plan. Here are the basics of what it will cover.
Personal Property
All of your normal belongings such as clothing, furniture, and other necessary items for living. Renters insurance excludes specialty items that would cost more such as precious jewelry or collectibles.
If you have some valuable personal property, you will want to double-check to make sure your insurance covers it. If your renters insurance does not cover the expensive property, then ask if you can put a rider on your policy. You may need to take out a special policy just for those specific items.
For example, if you have a new, expensive engagement ring, make sure your renters insurance covers it. If it doesn’t, seek an engagement ring policy.
You may have to pay a bit more each month for that policy, but then you’ll rest easy knowing that you’ve protected all of your personal property.
Liability
When you rent an apartment or a house, you are paying to live on someone else’s property. This means that if you damage this property, you’re responsible for fixing it.
Renters insurance covers liability as well as personal property. So if you lose your temper and kick a hole in the wall, you are covered. Renters insurance also covers your personal liability if you accidentally hurt someone.
It even covers your pets if they decide to hurt someone. So if a visitor aggravates your dog and the dog retaliates by biting them, your renters insurance will cover you and hopefully, keep your visitor from suing you.
Loss Of Use
If a fire damages your apartment and displaces you for a period of time, how will you pay your rent in two places at once? Where will you live?
If something prevents you from living in your current leased place, then renters insurance protects you from loss of use. It gives you the necessary funds to live somewhere else as you wait for your regular home or apartment to open back up.
Medical Bills
If someone else sustains an injury on your rented property or if you or a pet hurt someone, then renters insurance covers that person’s medical bills.
Theft
If someone breaks into your apartment and steals thousands of dollars worth of materials, renters insurance covers the loss of your personal property.
Even if you live in a two-bedroom apartment or a single-room studio, you could easily have over $10,000 worth of personal property in your apartment. A small space with expensive equipment makes for a big temptation for the would-be thief.
Plus, a person can easily steal a great deal of expensive material in one small place. You need renters insurance to cover lost materials when you are the victim of theft.
What Is Not Covered By a Renters Insurance Service?
Renters insurance has its limits. For example, renters insurance typically does not cover any damage caused by pests, earthquakes, and even floods.
Renters insurance will also not cover your roommates’ belongings, even though your roommate may have the same loss of personal property for the same reasons you’ve lost your property. Your roommate needs to have their own renters insurance policy.
Oddly, though, if you have a family member staying with you, renters insurance will cover their losses.
As mentioned before, renters insurance will not cover expensive jewelry like diamond rings or strings of pearls. If you received a high-value jewelry piece as a gift, have an expert appraise it, and then make sure you have personal property insurance to cover it.
Collectibles also do not typically receive coverage under a renters policy. So your coin and stamp collection may mean lots to you, but you’re going to have to pay for its replacement if a fire destroys it or a thief takes it.
Stay Covered, Stay Safe
If you rent your home, do not go without renters insurance coverage. This essential insurance policy protects your property. It even provides you with a place to live when your own place may be uninhabitable.
If you’re still on the fence and think you can get by without renters insurance, think about the cost of replacing your worldly possessions or the cost of having to pay for two places to live if you cannot live in your rental home for a short period of time. The insurance is worth the cost.
Do you need renter’s insurance? Contact us for all your insurance needs. We can connect you to the coverage you need.
