There are three parts to renters insurance. The first is coverage for your personal belongings, the second is liability coverage, and the third is loss of use coverage. All of these play an important role in protecting you as a renter since your landlord's insurance on the property will not cover those risks specific to you.
When you rent or lease, your landlord's insurance usually only protects the building itself—not your personal belongings. Renters insurance is the only way to protect your valuables, and it's much more cost-effective than you'd think. The amount of insurance you need will depend on the value of your possessions so that they can be replaced. It's important to know that certain events might be covered, while things like earthquakes and flooding are typically not. Here are some of the most common covered events in a renters policy:
Liability insurance protects you from lawsuits related to property damage or if somebody is injured while visiting you at your apartment. You may also want to consider no-fault medical coverage in the event that someone is injured so they can have their medical bills covered. One other factor to know is your limits and the amount of liability coverage you need for your specific risks. Be sure to check your renters insurance coverage details—there will usually be both an overall limit on the payout and a maximum amount for any one renters insurance claim.
If the rental property is destroyed or otherwise uninhabitable after a covered event, you may get a payment for additional living expenses. This safety net can help you recover from such a loss that you would otherwise have to pay for out-of-pocket. This may include coverage for hotel bills, temporary rentals, meals, and other expenses due to loss of use of the property you were renting or leasing.
There are a few things that are not typically covered in a renters insurance policy. For example, if you park a vehicle at the rental property itself and it is stolen or damaged, your car usually won't be covered by renters insurance. Floods or earthquakes require separate coverage that you would need to add to your policy. Also, if you have roommates who are not listed on the renters insurance policy, their personal belongings would not be covered.
Whether you rent a home or a studio apartment, you can't afford to not have renters insurance. Contact us to go through your options.
Taking steps to protect yourself as you begin your professional life can be challenging. Luckily, we're here to help. This ebook outlines the critical elements to consider as you explore insurance options.