What Is Covered By Renter's Insurance?

Many people are not aware of just how important it is to have renter's insurance when you live in a rental home. Thefts, fires, and all of the unfortunate things that can happen in a home may also occur in a rental home. If you are not protected by renter's insurance, you may find yourself suffering financially when you otherwise might not have had to. These are some of the things that renter's insurance covers.

Personal Property

If your personal property is damaged due to a fire or other disaster, the renter's insurance will cover the cost to replace it. If your property is stolen, renter's insurance will also pay the cost of replacing it as well. If another person who does not live in your rental home causes damage to your property, this would also be covered by the renter's insurance.

Damage to Others

If you are found to be guilty of causing damage or injury to others while on the rental property, the renter's insurance will cover the costs associated with this. For example, if someone comes to your home and has a fall, renter's insurance will pay their medical bills and legal bills should they take you to court. It will also pay for the cost of any damage that occurs to someone else's personal property while at the rental residence. 

Living Expenses

If the person renting the home needs to move out temporarily, the renter's insurance will pay for the cost of living at another location until they can return to the covered rental home. For instance, if a fire or other unexpected event occurs that deems the rental home temporarily unlivable, the renter's insurance will pay for the renter to move to another rental home until they can return.

One thing to be aware of with renter's insurance is exactly what type of coverage you are purchasing. Some insurance companies offer different levels of coverage. This usually includes a replacement cost value policy or an actual cash value policy. With a replacement cost value policy, the renter's insurance covers the cost of replacing damaged or stolen property at the cost of replacing it as a brand new item. However, with an actual cash value policy, this is not the case. This type of policy allows for a depreciation of the value of personal property from the time it was bought new until the current time. It will only pay for what the current value of the property is.

Contact a local insurance agency to learn more.


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