What Does Renters’ Insurance Generally Cover?
Your renters’ insurance policy will generally cover a few basic things such as:
- Personal property – will help you replace your covered belongings in the event of a covered loss.
- Liability protection – will help protect you financially should someone be injured in your home and you are found liable after they file a law suit.
- Increased living expenses – will help cover increased living costs incurred by a covered event that leaves your home uninhabitable.
- Guest medical protection – will help pay medical expenses incurred by someone being injured in your home.
Does my Landlord’s Insurance Cover my Stuff?
More than likely, your landlord has a landlord insurance policy to cover the dwelling; his/her property. Their policy does not extend to the contents of the dwelling and therefore does not cover your belongings.
Some landlord insurance policies cover against certain damages, but you could still be held liable for damages caused to the property in certain circumstances. For example, if you cause a fire or a plumbing leak that results in damages to the property, your renters’ insurance may cover some of these damages as well as your personal belongings.
Do I Still Need Renters’ Insurance if I Don’t Have Much?
The answer to this question is, absolutely! While you may think your stuff isn’t worth much, when you begin to add up things like electronics, clothing and personal effects, the sum grows larger than you can probably imagine. Even a small fire or burglary could add up to thousands of dollars in losses when you go to replace your personal belongings. A renter’s insurance policy will help cover at least some of these unexpected expenses.
Every insurance policy has contingencies; a renters’ insurance policy is no different. A couple of things you may want to consider when designing your renters’ insurance policy include:
- The policy’s limits – this outlines the maximum amount the insurance company will “payout” in the event of a loss. So, if your computer is worth more than the limit of your policy, you may want to consider additional coverage be added to the plan.
- Does your policy cover replacement cost or actual cash value? – Replacement cost is the amount it will take for you replace your lost item with an item of the same type and caliber. Cash value is the amount you would expect to receive were you to sell the item.
Liability coverage is in place to help you in the event someone is injured in your home and you were found to be responsible. It will help cover medical expenses, lost wages, and other expenses incurred due to the injury.