What Does Renters Insurance Cover?
Renters insurance provides financial reimbursement to cover a tenant’s lost or damaged possessions as a result of fire, theft or vandalism. It also covers a tenant’s liability in the event that a visitor is injured on the premises.
Whether the renters insurance or the landlord insurance pays for the costs associated with the injury will depend on the circumstances of the incident, the location on the premises where the injury occurs, and who is at fault.
Renters insurance can also provide compensation for alternative living arrangements if your rented home, condo, townhouse or apartment becomes uninhabitable due to storm damage or a fire. On a basic level, renters insurance will cover your contents and give you liability coverage. However, you can customize your policy to include many of the following additional types of coverage options. Here are the specific coverages found in many renters insurance policies.
Basic Renters Insurance Coverages
So what does renters insurance cover? Well, you'll most likely find the following coverages in many standard renters insurance policies:
* Personal property: Your personal property, otherwise referred to as "contents," including your furniture, clothing, electronics, etc., is protected against various perils that may cause damage or destruction, as well as from theft.
* Personal liability: Your personal liability is covered if a third party gets injured or sustains property damage, so if you end up with a lawsuit on your hands, your attorney, court, and other legal fees should be paid by your policy.
* Additional living expenses: Also called "loss of use" coverage, if your home becomes temporarily uninhabitable due to a major disaster, your renters insurance should cover the costs associated with staying somewhere else, like a hotel, while repairs are completed.
* Medical payments: If someone gets injured on your property, this coverage can help pay for their medical treatment or even funeral costs.
What's covered by renters insurance can vary slightly by the policy. Be sure to work with an independent insurance agent to get set up with the renters insurance coverage you really need.