An Overview of Renters Insurance
Good renter’s insurance protection is often overlooked but is quite crucial for the protection of a renter’s property. Keep in mind that the landlord’s own policy will not protect tenants in cases of theft, flooding, or fire in a renter’s own unit. Landlord insurance will only provide coverage for the landlord’s personally owned items and the structure of his or her building. It will not, however, provide protection for the renter’s personal items. Renters insurance is a cost-effective way to protect personal items and to extend invaluable liability protection for the renter, should something unexpected happen and end up in a lawsuit.
How it Works
A good renter’s insurance policy extends coverage for tenants residing in rental apartments, condos, town homes and single-family homes and covers much that a homeowner’s policy will, such as wardrobe, electronics and appliances, furniture and so on. Under renter’s coverage, your personal belongings will be financially safeguarded from fire, theft, severe weather events, vandalism, and even some cases of flooding.
This kind of policy also can extend coverage for accidental damage you might inflict upon someone else’s property and provide you liability protection should you be sued by someone who, for instance, is injured while visiting your rental home. If water floods your bathroom or kitchen floor and results in water damage to the unit below or if a burglar gains entry into your home and steals your personal items, renters’ insurance can be your financial salvation.
Good renter’s insurance coverage can even pay out for lodging expenses while covered damages to your unit are being repaired.
As with any insurance policy, should you file a claim against your renter’s policy, you will be obligated to first pay an agreed-upon deductible. You generally can choose your own deductible amount when you purchase your coverage. (In general, the higher the deductible, the lower the premiums will be.) Keep in mind that your policy will only pay out up to the limits of the policy you have elected to carry. Choosing higher limits means that you will be less likely to have to resort to paying out-of-pocket for any losses.