Renters Insurance Policies
What is Renters Insurance?
A renters’ policy is similar to homeowners’ insurance in that it covers both the tenant and their personal property in the event of loss, damage, or injury. The exact coverage depends on the specific terms of the individual policy.
Who should be covered?
Many renters are under the misconception that their landlord’s insurance protects them and their property in the event of injury or property loss due to damage or theft. In fact, the landlord’s policy only covers their property and physical structures. Most leases specifically state that the landlord is not liable for any loss or damage to the tenant’s property or for any injuries to guests that occur within the tenant’s apartment. Anyone who rents an apartment, condo, or house should invest in renter’s insurance to ensure they are protected from loss or liability.
How does it work?
A renters’ policy typically covers property losses resulting from theft, fire, utility malfunctions, vandalism, and certain weather-related disasters. As a general rule, earthquakes and floods are not covered. If you live in an area prone to these types of disasters, you should speak with your agent about specific coverage for these hazards. A renters’ policy can also cover you in the event someone is injured on or in your rental property.
What types of coverage are available?
Coverage amounts and deductibles can be structured to meet your individual needs. Renters can choose from policies that pay either the actual cash value or the replacement cost of the lost property. Actual cash value is determined by the insurance company on how much your property is worth at the time it is lost. A replacement cost policy will reimburse you the full retail value of the lost items.
Renters’ policies provide significant peace of mind. Besides allowing you to replace lost items, renters’ policies often provide additional benefits, including:
• Temporary living expenses in the event your home becomes uninhabitable.
• Coverage for personal items in your vehicle.
Renters’ policies tend to be relatively inexpensive and can be easily customized to suit your particular needs.
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