Even if you are not an owner of your apartment or a house, you still need to protect your belongings and insure your liabilities to feel confident and supported. There is a huge list of everything that can happen and it’s obviously not that smart to let the “luck” rule this aspect of your life.
Unexpected events may start from the damage of personal belongings or identity thief and rise to an injury of your visitors inside your apartment.
Generally speaking, the Renters Insurance protects you almost in the same way as insurance protect a homeowner. Read here about homeowner’s insurance to compare.
What is covered by Renters Insurance?
1. Personal Property
Personal belongings insurance means you will have enough money to replace your possessions in case they were stolen or damaged by the:
- Fire (including the fire resulted from the power system failure or short circuit).
- Water (including water from the broken cooling or heating system). It’s important to know that renters insurance does not cover the damage caused by the flooding. If you want to protect yourself against flooding, a special Flood Insurance policy is needed. Read more here if you are interested.
- Power failure and power line surge which lead to the damage of your electronic appliances.
Your renters insurance policy doesn’t cover the harm of the building itself, as it is an owner’s responsibility to have their house’s dwelling insured.
When buying a Renters Insurance you will have to define the maximum amount (coverage limits) your policy can cover in case of an insurable event. It stands to reason that the bigger the coverage limits the more premiums you will pay to keep your policy in force.
Same as homeowner’s insurance doesn’t cover extra-valuable pieces like famous paintings and high-class jewelry, your Renters Insurance policy will not cover it either. There is a special type of insurance for such property.
This aspect is, probably, even more important than the coverage of your property. With liability insurance, you are financially protected in case something happens to your visitors or their property inside the apartment you rent. Let’s say, if your guest is being injured by falling out of stairs and as a result, they require medical treatment (or even worse – they file a lawsuit against you), your Renters Insurance kicks in and cover the expenses.
Your policy protects you in following cases:
- Your pets’ actions lead to the injury or your guests or neighbors’ property’s harm (except the dogs’ breeds listed as dangerous and aggressive). Your pets must be included into the policy.
- Liabilities related to unpaid volunteer services (if you help someone without taking money for it but you have failed and your failure led to some unwanted and unforeseen consequences for your visitors).
- Your children actions which lead to the harm of property or health of your visitors. All kids must be included in your Renters Insurance policy.
Liability Insurance policy covers medical expenses and property replacement costs of the property of your apartment’s visitors and your neighbors.
3. Additional Living Expenses (Loss of Use)
This aspect of your Renters Insurance policy may help significantly in a case of an insurable event taking place. In case your apartment is in inhabitable condition due to fire or vandalism or any other reason, you will need to live a certain period at a hotel or rent another apartment, so you will have unexpected and often significant expenses.
All those expenses are covered by the Loss of Use aspect of your Renters Insurance policy.
4. Your roommate belongings
Typically, Renters Insurance policies are purposed to cover only policyholder’s property and liabilities. Anyway, if you want your roommate’s belongings to be protected, you will have to list all their belongings in your policy. Obviously, your premiums arise in this case.
5. Optional coverage
Here you may insure anything special and exclusive which is a part of your lifestyle, wellbeing, home business or even a part of your piece of mind. You can include in your Renters Insurance anything which is important for you and it will be covered for some additional premiums.
In case you want to insure your pets, there is a special Pets Insurance with the number of options.
Before buying your Renters Insurance and defining the coverage amount and premiums you are willing to pay, remember that you will also have to pay deductibles. The deductible is the amount you can afford to pay for damaged property or for liability before the Insurance policy covers the rest of loss. The bigger your deductible amount the lower your monthly premiums and vice versa!