What is Renters Insurance?
Many renters are under the impression that their
landlord’s insurance policy will cover their belongings, unfortunately that
generally is not the case. Your landlord’s policy covers the building itself,
but it may not include your personal belongings, and may not cover injuries
sustained within the structure. That’s where renters insurance comes in.
Renters insurance protects your personal
property in a rented apartment, condo or home from unexpected circumstances
such as theft, a fire or sewer backup damage – and will pay you for lost or
damaged possessions. It can also help protect you from liability if someone is
injured on your property.
Renters insurance is similar in scope to
homeowners insurance, with the exception that it does not provide coverage for
the dwelling itself or other structures.
How does renters insurance work?
If you experience a covered loss in your
rented space, renters insurance can help to cover the associated costs. The
amount covered will depend on the type of loss that occurred and the amount of
coverage you have.
There are two types of coverage options under
a typical renters policy: Actual Cash Value coverage and Replacement Cost
coverage. Here’s the difference between the two:
- Actual Cash Value coverage will
reimburse you for the value of the items at the time of the damage or
loss.
- Replacement Cost coverage covers the cost it takes to replace the items lost or damaged.
What does renters insurance cover?
A renters insurance policy offers you coverage
for the loss or destruction of your personal belongings in the event of a
covered peril such as:
- Fire
- Lightning
- Windstorm
- Hail
- A frozen plumbing system
- Theft
- Vandalism
- Impact by a vehicle
Renters insurance may also cover you if:
- You are forced to temporarily move
out of your home: In the event your home
becomes unlivable due to damage caused by a covered instance such as a
fire or vandalism, renters insurance can help cover the cost of
alternative living arrangements while your home is repaired or rebuilt.
- A person is injured on your
property and requires medical attention: Personal liability coverage
is designed to protect you, as well as other individuals who visit your
home, if an accident were to occur. This type of coverage will help pay
for medical costs and legal fees that you could end up incurring.
- Items you keep inside your car are
damaged or lost: Depending
on your renters insurance policy, you may be covered for belongings that
you keep inside your car. Note that this coverage does not include equipment
or systems installed in the car.
Get more information about what renters insurance covers.
What does renters insurance not cover?
Now that you have a basic idea of what
renters insurance covers, it’s important to understand what a basic renters
insurance policy does not cover so that you’re prepared:
- Valuables. Expensive
collectibles and valuables such as jewelry may not be covered under a
basic renters policy and may require additional coverage.
- Home business. Operating
a small business out of your home doesn’t mean it will be covered by your
renters insurance. For instance, if your business laptop is stolen from
your apartment, there’s a chance it could be considered business property
and therefore, won’t be completely covered by your renters insurance.
Check with your provider to see if your policy covers a home business or
if you need additional coverage.
- Motorized vehicles. Use or
ownership of a motor vehicle will not be covered by your renters insurance
even if it is parked on your property (this also applies to aircraft and
specific watercraft). Personal belongings kept inside the vehicle,
however, are typically covered.
Find out more about the benefits of renters
insurance and get a quote online
today. Also, remember to always make sure to thoroughly read through your
policy so that you have an understanding of what is and isn’t covered.
