Answering Your Renters Insurance Questions Image

Answering Your Renters Insurance Questions

November 8, 2019


You may not own your own home, but that doesn’t mean that you don’t own all the valuable items inside it, which is when renter’s insurance comes into play. With coverage that varies from replacing personal property if it gets broken or stolen, to protecting you from identity theft, this insurance can be hugely beneficial for tenants of rented properties.  

What are the coverage limits for renter’s insurance?  
Each policy will have its limits, or the maximum amount that the policy will pay you should you have any personal property or liability losses. Knowing the basic coverages will enable you to make a better decision about which type of coverage would work best for you:

Despite what you may think when you first cast your eyes over your personal belongings, they probably have a greater value than you might imagine. If your personal property becomes damaged by such events as a fire or a flood/leak (such as from plumbing or a cooling system), gets stolen or is broken by power surges (as may happen to electronics and appliances), then your personal property coverage ensures that you’ll be able to return any damaged items to normal, or replace them.

If a guest in your home (irrespective of who they are) has an accident while staying with you and requires medical intervention, then you may be found responsible for that accident and therefor for their medical expenses. Depending on the nature and severity of the injuries sustained, the medical bill could be a significant one, and this type of policy helps to provide you with financial protection against covered claims and lawsuits that may be brought about by the injured party. Just as is the case should the personal property of a guest become damaged or broken by your personal activities, your children or your pets while they are in your home. Some of the costs covered by this policy include acts of the insured’s pets, claim and defence expenses, liability to others and negligent acts of the insured’s children.
 If your rental property becomes damaged by such events as a fire or a flood and you can no longer reside there, then most renter’s insurance policies will reimburse you for hotel stays and other associated costs.

Having a renter’s policy that fits around your specific needs and lifestyle is essential, and most have options for add-ons that can protect pets, home businesses and expensive collectible items, for example.

What about roommates?  
Unrelated people living in your rental property, such as roommates, can complicate the coverage, and they’re personal items are not usually automatically covered unless they’re specifically listed on the policy. That said, each state has their own rules when it comes to these cases, so it would make sense to check such matters directly with your insurer.

Insurance coverage is easy when you know what to look out for and are clear on what level of coverage you want. However, renter’s insurance can be just as confusing as any other type of coverage, so be sure to talk things over with your provider before you sign up for anything.