These days most landlord’s require proof of renters insurance. While it may feel like an annoyance, a renter policy will give both you and your landlord extra peace of mind.
One key benefit of a renters policy is that it identifies where coverage applies, helping reduce potential disputes between the tenant and landlord. That’s why you should know what a policy covers and doesn’t cover.
WHAT A RENTER POLICY COVERS
Personal Possessions. Many people mistakenly believe their landlord’s insurance policy will cover the structure of the building and all of its contents. Your landlord’s policy covers only the structure, not your belongings.
That’s where renters insurance comes in; it will help cover the replacement costs of your things if they’re stolen or ruined by covered “perils,” such as a fire or sprinkler leakage.
Loss of use. If you end up not being able to use part or all of your rental due to unexpected damage, renters insurance typically pays for expenses above your normal living costs. That would include temporary housing costs and possibly increased food expenses.
Liability. Personal liability coverage is included in most renters policies and protects you if someone gets hurt in your rental. Your insurer will investigate any claim, and if you’re found liable, the company will pay damages owed up to the policy’s coverage limits.
WHAT A RENTERS POLICY DOES NOT COVER
The full cost of some items. Most insurance policies, including renters, cap how much they’ll pay if certain things are stolen. Those items often include jewelry, cash and coins, rugs, tools, and other items. If you have belongings that are particularly valuable, talk to your insurance agent about obtaining additional coverage for those valuables.
Losses caused by non-covered perils. If you live in an area where natural disasters such as earthquakes or floods can occur, you might want to purchase a separate policy to cover damages caused by those perils. Renters insurance does not cover earthquake or flood damage
Most people are pleasantly surprised by the low premiums for renters insurance, an average of $15 per month. Buying a renters policy can earn a multi-policy discount if you purchase coverage through the same company that insures your vehicles.
Talk to a trusted insurance advisor to get the proper coverage for your living situation.