The short answer to this question is yes. Everybody that rents a home, an apartment, or a condo in Kentucky should purchase renters insurance. In fact, anybody that rents in the entire United States should have a renters insurance policy.
It’s usually cheap—depending on where you live and the amount you take out—and it protects you from losses due to theft and fire.
Most likely, you know someone who has been robbed. Did that person have insurance to cover his losses? Or did he have to pay out-of-pocket to replace what was stolen?
The simple act of purchasing an inexpensive renters insurance policy can make the recovery process a whole lot easier.
How Much Renters Insurance Do I Need?
The answer to this question depends on how much you own.
Make a detailed list of everything you own, especially belongings of high value (e.g. stereo equipment, jewelry, computers), and then determine the monetary value of each item.
We recommend creating a spreadsheet with columns for the brand of the item, the make, any identifying numbers, and the estimated value.
Once you’ve catalogued your belongings, add up the total value. You should ideally purchase enough renter’s insurance to cover that amount.
Important: Do not save your list in a place that is vulnerable to fire or theft. Put it in a fireproof safe that’s bolted the floor or give it to a trusted friend.
What Does Renters Insurance Cover?
Renters insurance covers your belongings from theft or fire. It does not cover the building you’re renting. It can also cover your belongings even if you’re away from home. For example, if you’re mp3 player is stolen from your car, your renter’s insurance will pay to have it replaced.
Renters insurance typically covers loss or damages caused by:
- Windstorm or hail
- Electric surges
- Falling objects
Coverage also includes Additional Living Expense. For example, if your rental unit is not livable due to a covered loss, your policy would help pay for you to live somewhere else temporarily while your unit is being repaired.
Additionally, renters insurance policies usually include liability protection. So, if someone is injured inside your rental unit, renters insurance can help cover medical expenses.
What Isn’t Covered by Renters Insurance?
The typical renters insurance policy does not cover your belongings in the event of a flood or an earthquake.
And, if you live in an area that is prone to hurricanes or tornadoes, your policy may not cover damages resulting from these kinds of storms.
If you decide you would like to be covered for these types of events, you have the option of purchasing additional coverage.