What Does Renters’ Insurance Cover?
"A renters’ insurance policy covers for loss of personal belongings a tenant keeps in their rented dwellings as well as liability claims for injuries visitors may suffer while on the property."
Renters insurance applies to most forms of residential property, including mobile homes and studio apartments. Without this coverage, you would have to replace personal property, like furniture, art collections, and appliances out of pocket if something was to happen to it. Even if your landlord carries insurance for the rented property.
If a fire were to destroy the house you’re renting, the landlord’s homeowner’s insurance policy would only cover damage to the house and outbuildings. It would omit coverage for your personal property destroyed in the fire. For this reason, as a tenant you must carry your own insurance.
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What Common Risks Does Renters’ Insurance Cover?
Renters’ insurance, also known as tenants’ insurance, protects against personal property a tenant keeps at the rented dwellings. But what common perils can tenants hope to be protected from?
The policy will specify the actual breadth of coverage, but renters insurance policyholders will generally be protected against perils like
The policy will specify the actual breadth of coverage, but renters insurance policyholders will generally be protected against perils like
· fire,
· theft,
· vandalism,
· plumbing failures,
· weather damage, and
· electrical malfunctions.
Policy-specific perils may include risks such as riots, hail, volcanoes, and explosions
Tenants’ insurance can also cover costs associated with loss of use
Besides loss of physical property, renters’ insurance policies may also have scope to cover loss of use in the event your rented dwellings were to become uninhabitable.
A place of residence may not be livable if it, for example, flooded because of a plumbing failure. It can also be unsafe to occupy due to a pest infestation, gas leak, or other such health or safety risk. Your policy would cover for any temporary housing as well as any costs associated with it.
Get A QuoteA renter’s insurance policy must carry liability coverage
It is important that your renters insurance policy carries liability coverage. This coverage will protect you in the event someone sues you for injuries and damages they suffered while in your rented dwelling. As well as damages and the injured party’s medical costs, the policy will also cover your legal expenses from the lawsuit.
However, renters insurance policies exclude liability claims caused by structural defects on the property itself. For example, if a visitor got injured because the roof caved in or a wall collapsed, your renter’s insurance policy would not cover the liability claim. The injured person would have to sue your landlord.
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Do I Really Need Renter’s Insurance?
Outside your car, you may not think you have any personal property that is worth protecting with insurance. But the truth is we all have items of value - both financial and sentimental - sitting in our rented properties.
In general, any personal property that you would not easily replace is worth insuring. The good news is renter’s insurance is one of the cheapest coverages you can buy.
Consult our renters insurance experts here for more guidance on your many options