What is renters insurance? Renters’ insurance is a type of insurance written specifically for renters. Renters are those who live in rented accommodation and insure their personal belongings against damage or theft. In many ways, renters’ insurance is like homeowners’ insurance in that it provides coverage for structure and construction, but doesn’t provide coverage for the home, or the building itself, with the exclusion of certain small aesthetic modifications that a renter makes to the property.
Renters’ insurance is purchased by anyone who rents rooms, flats, or homes and covers their personal possessions against loss, theft, destruction, or damage. The policy will pay up to so much per claim as well as liability and property damage incurred by the insured. Some policies cover only a specific number of possessions or exclude them all. Other insurance policies, like home owners’ policies, cover a pre-set number of possessions and a set maximum amount.
Renter’s insurance is designed to provide protection in situations where personal property is damaged, stolen, destroyed or accidentally stolen while a tenant is living in the same dwelling as that of another. The coverage provided will vary based on the policy. Many policies will cover a percentage of a tenant’s rent, or will limit coverage to a liability of $500 or less. A select few policies will cover losses sustained while away from home and may even cover losses sustained while on holiday.
What about flood insurance?
If you own a rental property, you might want to consider additional flood insurance coverage to protect the investment in your home and your possessions. Renters insurance will often not cover water damage. Some insurance companies, however, do offer an umbrella policy that includes flood damage, so if you do own a rental unit you might want to talk to an insurance agent about whether your existing coverage includes it.
what coverage is right for you and your needs
When considering what coverage is right for you and your needs, take into consideration any pets that may be staying with you as well as the items in your home that you might want to insure. In many cases, your existing renters insurance will not cover damage caused by a pet. If your pet causes damage, you might want to add coverage to your existing insurance policy. You should check with your existing provider to determine what coverage is offered through the plan you are using and to determine whether or not the policy will cover water damage.
Contents insurance is designed to provide protection for your personal belongings while you are renting your residence.
Most providers will require you to list all of your personal belongings when signing your rental agreement. If you decide not to include your belongings, some providers will give you an itemized inventory of all of your belongings. With this inventory you can estimate how much insurance you will need, and you can also see at a glance, exactly what you will be covered for.
It is not unusual for people to rent an apartment for several months out of the year. The cost of insurance will vary based on the length of time you rent your apartment. If you are renting for only a few months, you will probably not need anything more than renters insurance. However, if you are renting for years, you should consider insuring your personal possessions, and you should also consider what your neighbors’ renters insurance might contain. If you live in an area where there are a high number of break-ins, theft, or vandalism incidents, you may also want to consider additional coverage through a security or safe-keeping company.
What is renters insurance provides coverage for, in the case of most apartment or house renters. It is designed to protect you, the renter. It is not meant to be a substitute for your landlord’s insurance.