Renters insurance is designed for people who rent a house or apartment. Renters are not normally responsible for insuring the building in which they reside – that’s the responsibility of your landlord. However, your landlord’s insurance does not cover your furniture or possessions, nor does it provide you with liability protection. This is why renters insurance is important.
Fortunately, renters insurance tends to be very affordable because you only need coverage for the contents of your house or apartment, not the building structure itself.
Renters Insurance Coverage
Renters insurance provides liability coverage as well as coverage for your possessions. The coverage provided by a typical renter’s insurance policy is detailed below:
Coverage for Your Personal Property
Personal property coverage provides protection for your personal belongings. Most policies place a limit on the maximum amount payable for any one item; therefore if you have high-value items such as jewelry, artwork or collectibles, you should request a special endorsement (floater) to obtain full coverage for these items.
Liability coverage gives you protection against claims arising from accidents or injuries occurring within your home for which you have legally responsibility, including the medical expenses of guests arising from injuries that occur in your home.
Coverage for Additional Living Expenses and Loss of Use
Coverage for additional living expenses provides welcome relief if you are temporarily unable to inhabit your home due to damage caused by an insured peril. It helps pay for your living expenses, such as the cost of staying in a hotel until your home is repaired. Coverage for loss of use is intended to compensate you for certain losses incurred as a result of being unable to occupy your home, such as the loss of rental income if you normally rent out a room to someone else.
Some renter’s policies provide coverage for other expenses you might incur, such as costs related to loss assessment in the event of damage to your possessions, or other perils such as identity theft.