Renters think that they don’t need insurance as their landlord’s insurance has them covered for their stuff, which is not the case. The policy your landlord has is for their building and not the personal stuff you own or the injuries you might incur. For this reason, you need renters insurance.
With renter’s insurance, you got your belonging covered in a rented house, condo, or apartment in situations like theft, sewer damage, or fire damage. It can also save you from liability if someone was injured at your property.
Renter insurance is the same as homeowner insurance the key difference is that it doesn’t cover the apartment or the structure itself.
How does renters insurance work?
Generally, two types of coverage can be claimed, Replacement Cost coverage and Actual Cash Value coverage. The difference between both can be understood below:
- Replacement Cost Coverage: covers the lost or damaged items cost.
- Actual Cash Value Coverage: covers the cash value of the damaged or lost items cost.
What does renters insurance cover?
Renter insurance policy got you covered for the destruction or loss of your stuff in the events like:
- Frozen plumbing system
- Impact by a vehicle
You might also be covered for:
- Forced to temporarily leave your house
- Someone has got injured at your property and requires medical attention
- Items you kept in your car have been damaged or lost
What does renters insurance not cover?
You know now what is covered with renter insurance, it is time you know what will not be covered by your renter insurance policy.
- Valuables: the basic renter insurance doesn’t cover the valuables like jewelry and might need additional coverage.
- Home business equipment: running a small business from your home doesn’t mean you will be covered for the equipment of your home business. Like if you own a laptop and it is stolen from your rental property it might not be covered ask your insurer if it is covered or you need additional coverage.
- Motor vehicles: any motor vehicle parked on your property isn’t covered by renter insurance even if it’s a specific watercraft or an aircraft. Typically, the personal items inside the vehicle are covered.
Make sure to read your insurance policy thoroughly for every type of insurance to know what is covered and what is not.