Explaining Renters Insurance

The truth is that whether you own or rent, you need the protection of insurance. Renters, not just homeowners, can qualify for insurance, too. Renters insurance is a good idea to have, as it will provide you with a safety net and peace of mind you can’t afford to be without.

At a minimum, renters insurance will cover your personal property in the event of theft, fire, or other natural disasters. You can recoup any losses of furniture, clothing, electronics, and more. Renters insurance can also provide you with liability protection in the event that someone is injured while at your residence.

Several options are available with renters insurance that can give you a lot of flexibility, depending on your needs and how much you want to spend. Personal property coverage will cover the loss of your belongings from damage due to fire, hail, smoke, vandalism, theft, lightning, plumbing leaks, and other disasters. Before you decide to take out this type of policy, you should make a list of your personal property and its value. The policy will be written for that amount. Be sure to determine the value accurately or you may find yourself undercovered in the event of an unexpected disaster.

Renters insurance generally includes or offers personal liability protection in case you are sued due to an injury incurred by someone while visiting your residence. This type of policy covers related damage as well as relevant legal costs. The minimum coverage this type of policy offers is usually $100,000. It covers injuries or damage to guests caused by you, other members of your household, or pets.

Another type of policy you might consider includes additional living expenses. If your residence cannot be lived in because of damage due to a hazard covered under the policy, your insurance will pay up to 20 percent of the contents coverage amount in order for you to rent another residence or relocate. This includes hotel, meal, laundry, and other costs until your residence can be reinhabited or you permanently relocate.

Selecting an improvements coverage option will allowsyou to apply up to 10 percent of your contents coverage to replace or repair items that you redecorated or altered before a covered disaster or event occurred.

A legal liability for fire policy will protect you if you're held legally responsible for fire damage to your place of residence.

Remember that you are responsible for paying deductibles with renters insurance just as you are with any other type of insurance coverage. You can adjust the amount of deductibles in order to lower the cost of your premium, if necessary, to make the policy more affordable.