Renters insurance provides liability and personal property coverage for renters. Your landlord should have coverage for the building and the property, but that doesn’t cover you or your belongings. Anyone living in rented space should consider this coverage.
The options provided are usually the same across all policies, with occasional variations.
Personal Property – This replaces stolen or damaged items. Coverage applies to certain situations, such as fire or theft. The maximum amount your policy will pay depends on its coverage limits. Assess the value of your property to help decide how much coverage is sufficient.
You’ll also have to choose how you want to be compensated. Actual cash value pays the current market value of the item. And replacement cost pays the current retail value of the item.
Liability Coverage – If you’re legally responsible for injuring someone, then liability helps pay any associated costs. For the claim to be valid, the injury must occur at your home or apartment. The coverage also pays if you’re responsible for damaging someone else’s property. There are limits, so the entire amount may not be covered.
Additional Living Expenses – If your rented home or apartment becomes temporarily uninhabitable, then your policy might pay for things such as hotel bills or food. Check your policy to see if these additional expenses are covered.
Filing a Claim
Before the insurance company will provide compensation, you have to pay a deductible. The amount of the deductible depends on your premium. A lower premium results in a higher deductible. And a higher premium means you pay a lower deductible.
Your insurance company will have to verify your claim. They have to make sure the incident is one that is covered by the policy. If your claim is verified, then the policy will pay the promised amount.
Benefits of Coverage
Renters insurance helps protect you and your belongings. You know you’ll receive help to recover from incidents such as theft or fire. And you’ll also receive help facing certain legal issues. The safety net provided by this coverage provides peace of mind.