When you rent an apartment or house, the responsibility of insuring the property against damage resulting from fire or other disasters falls on the landlord. However, his personal property is not covered because, as a renter, he has the option to purchase renters insurance that consists of various coverages to protect him against the unexpected.
These are the items covered by renter’s insurance:
Personal Property Coverage
Consider all of your belongings and try to attribute a monetary value to each one. Well, you may find this quite complicated. The renter’s policy provides coverage for theft, destruction, or loss of your personal effects in the event of fire, electrical storm, or any other covered peril. So it’s meant to help you replace the items you use every day, from your clothes to furniture to your appliances and other expensive items. You will be surprised at the cost to replace these purchased items over time.
So what does renters insurance cover? If you’re an audiophile with very expensive stereo equipment or a die-hard jewelry collector, then you can take extended coverage that offers scheduled personal property coverage or float insurance that provides higher limits. Although this additional coverage may increase your deductibles, you need to make sure you have enough coverage for your big-ticket items. The good thing about a renters insurance policy is that the coverage is always in place wherever you go with your valuable possessions, like a digital camera, a new laptop, and a mountain bike.
Liability Coverage
While it’s true that life is a risk, you don’t have to suffer a financial loss every time something goes wrong. As such, the liability insurance that is part of your renters insurance can come in handy in the event that a guest is injured in your home and sues you. For example, someone may come to your house and unfortunately trip down the stairs and sustain serious injuries that require medical attention. In the event that you are found to be responsible for the accident, renters insurance liability can help cover both your medical bills and any additional damage and legal expenses. You should seriously think about taking enough coverage to protect yourself against any eventuality when purchasing renters insurance. Liability coverage can take care of accidental damage caused by you or any member of your family, such as your child breaking your neighbor’s living room window with a baseball. Therefore, your liability insurance plan may cover such damages.
additional living expenses
In reality, people hardly think about alternative accommodation or how they would pay for it in the event of a disaster or fire that rendered their rental home uninhabitable.
If you’ve purchased homeowners insurance, you’ll enjoy peace of mind knowing that in the event your rental home is damaged, you won’t have to share a house with your friends or, well, in-laws. Paying your temporary living expenses, such as hotel expenses and any additional bills you don’t normally incur, provides the best answer to the question: What does renters insurance cover?