What Does Renters Insurance Cover?

What Does Renters Insurance Cover?

Renters insurance typically includes two main types of coverage:

Personal Property Coverage: This covers the cost of repairing or replacing your personal belongings if they are damaged or stolen. Common covered events include fire, theft, vandalism, and certain types of water damage. From your electronics to your furniture and clothing, renters insurance can help you recover financially if the unexpected happens. A very common occurrence with Renters Insurance is some type of water damage in an apartment building. The building does not cover your personal property. You are responsible to cover our own property.

Liability Coverage: Liability Insurance coverage protects you if someone is injured in your rented home or if you accidentally damage someone else’s property. For example, if a visitor slips and falls in your apartment, renters insurance could cover their medical bills and your legal expenses if they decide to sue. The key to liability insurance coverage is negligence. You typically have to be negligent or have done something wrong that you are responsible for, for the liability coverage to trigger.

How To Choose the Right Renters Insurance

When choosing a renters insurance policy, consider the following:

Coverage Amount: Estimate how much personal property that you have. Consider all of your clothes, electronics, furniture, miscellaneous items. It adds up quickly.

Deductible: The deductible is the amount you pay out of pocket before your insurance kicks in. A higher deductible may lower your premium, but be sure you can afford it in the event of a claim.

Liability Limits: We recommend to max out your liability coverage. It is inexpensive to have high liability limits. How much coverage do you want to have if you are sued? As much as possible.

Why You Need Renters Insurance

Renters insurance may not be required by law, but some landlords make it a requirement in lease agreements. Even if it’s not required, having this coverage is a smart financial move. Disasters like fires or theft can happen to anyone, and renters insurance ensures you’re not left in a tough spot trying to replace everything out of pocket. Not to mention that you receive a discount on your car insurance, which pays for a significant portion of this home insurance coverage. This discount helps make renters insurance inexpensive. You will also save a little money on your car insurance policy by packaging these together.