What Does Renters Insurance Cover?

Knowing How Your Renters Insurance Can Help

For somebody renting a home, an added monthly expense that doesn’t provide food or entertainment can cause irritation. With many apartment complexes now requiring renters insurance, it is best to know what renters insurance does and how it can benefit you. Not knowing what your renters insurance is in place for could mean that you end up spending your own money on an expense your insurance would have covered.

What is Renters Insurance?

Renters insurance can provide you with money for expenses that arise concerning things such as personal property, liability, or additional living expenses. These can all prove to be a valuable protection that save you from much steeper expenses should the need for them arise. Each of these looks a little different in how it is implemented into most policies, but the framework should be similar.

Personal Property

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This is a typical feature of renters insurance and could cover the cost of fixing or replacing your property in the event that it is damaged, lost, broken, or stolen. This coverage might still take effect even if the damage is your fault. The coverage could also take effect if it is damaged or stolen away from the property. For example, if you had your lap-top stolen from your car, your policy might cover the replacement up to a certain amount.

In most cases, the value of the personal property that will be covered is subject to limitations. There will also usually be a deductible to pay before insurance will kick in. A deductible requires you to pay a portion of an items replacement expense before the insurance company will cover the remaining cost. Deductibles within a policy will vary between companies and policies.

Keep in mind that under some policies there will be items that are not covered. In almost all cases there will be a limit to the value of an item that will be replaced.


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If you are found responsible for injuries to others or damage to the property of others at you residence, the liability coverage in your renters insurance could cover the expenses that arise from this event. Accidents aren’t something you plan to have happen but being prepared for them is the right choice. Unless you plan to hide at home and allow nobody to come visit you, there is a chance that somebody could be injured on your property or damage could be caused to a neighbor’s property.

Again, coverage limits will likely apply to this coverage and deductibles may be applicable. In any event, if you find yourself in a situation where you need to pay for a friends medical bills, you will be glad you have insurance that will cover the bulk of the cost.

Additional Living Expenses

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In the event that a natural disaster or accident makes your rented property unlivable, this coverage in your renters insurance while make sure you can still keep a roof over your head. This means that once you sign your lease, you can be confident that you will be able to provide yourself and your family with a place to live.

Covered costs could include things such as hotel expenses and food costs. This could even cover costs greater than the amount of what you would normally spend on particular items. An event of displacement is one that you might not expect and most people never experience, but having this coverage means you won’t need to rely on others to give you a place to live.

Understanding Your Policy

It is important to read your policy thoroughly before signing and after signing so you completely understand the nature of your coverage. Ignoring the details of your coverage means that you are adding a monthly expense without understanding how it functions or how it could help you. Thus, you would be increasing the chances of your paying for something that you didn’t know could have been paid for you. Renters insurance usually will cost you between $100 and $200 for the entire year. Ignoring its utility is negligence that could cost you much more than that.

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