Renters insurance is an inexpensive policy you can buy when you are renting an apartment or home and need financial protection in the event there's damage to your personal property. When shopping for a policy, it's important to understand the difference between the types of renters insurance and what they specifically cover.
What Many Policies Cover
When you shop around you'll find that many providers offer the same benefits when it comes to a renters insurance policy. Included in this coverage are the following:
- Normally, a policy will insure your personal property for up to a specific amount in the event it incurs damage or someone steals it. Since renters have a 25 percent greater chance of having items stolen, this coverage is a must.
- The policy will also cover personal liability. What this implies is that if a person incurs injury when inside of your apartment due to an accident and the visitor decides to sue you in court, the policy can cover a portion of your legal costs. It will also cover the injured party's medical bills. Now it's important to be mindful of the coverage amounts, as legal fees and medical bills can more than offset your policy's benefit in certain instances.
- Renters insurance also comes with some unique benefits such as covering you if you accidentally damage another person's property. In addition, the provider can pay for your living expenses if you have to move from your residence due to damage or other covered incidents.
If you live in an area that receives its share of earthquakes, you should ask your policy provider if this coverage is available with your renters insurance. Typically, your basic policy will not cover any damage done by an earthquake. Therefore, if you live near a fault line or in an area where this is a frequent occurrence, this is an excellent policy to add.
As gross as it sounds, occasionally your home or apartment's sewage system doesn't work as designed and it can backup, which can cause significant damage to your personal belongings. If your general policy doesn't cover this, then you should add this coverage.
One of the unique things about insurance is in some instances you can tailor it to best fit your needs. For example, if you house a valuable collection or have multiple expensive items, it's important that you have the coverage in place to financially reimburse you if you lose these items to theft or damage. This is where an insurance rider can come in handy because it gives you additional financial protection to cover more than your general policy does.
To conclude, renters insurance is an excellent way to financially protect your possessions. Before you sign up for a policy, it's important to weigh your needs and select the policy that best fits them. You should also pay close attention to the maximum policy benefits and if you think it's necessary, add a rider to give you more protection. Lastly, if you live in an at-risk area prone to earthquakes, be certain that you add that coverage to your policy.