What Is It?

This insurance is similar to homeowner’s insurance; it will cover the costs of any damage done to your personal property if it is destroyed. The items inside of your home are typically replaced as long as they are covered under your policy. This insurance will also provide you with coverage for any items inside of your home that are lost or stolen. Some renters’ policies also provide medical coverage if you are injured inside of your rented residence.

Is this Insurance for Me?

Many renters are under the misconception that landlord insurance will cover their personal belongings; this is not true. Landlord insurance generally covers the building, not the personal belongings of the tenant occupying that property. Your personal property may not seem valuable, but it is often worth more than you think.

You want to get this insurance to protect yourself against any accidents or injuries that may occur at your home. You could be held liable for an injury to another person if that accident took place on the property that you are renting. You could also be legally responsible for any damage done to another person’s property if the incident takes place at your rented residence. Your policy will typically cover your legal fees, and any judgments against you, within your policy’s limit. Without insurance, you will need to pay out-of-pocket for these expenses.

How Does this Insurance Work?

The type of coverage that you have in place will typically determine how your policy works. You can purchase “replacement cost coverage” for your personal belongings, or you could buy “actual cash value” insurance to cover your personal property. The latter will pay out what your property was worth at that time, whereas the former pays the amount that it actually costs to replace your personal belongings.

When your items are lost, stolen, or damaged, the property will be accessed, and your belongings will be replaced, as long as they are covered under the policy, and are within the coverage limits. Most insurance policies require you to pay a deductible before the coverage will begin working. Once you file a claim, an insurer will investigate your claim and determine what happens next.

Do not wait until disaster strikes; get renters insurance to protect your property today!