What does renters insurance cover?

April 17, 2013

When you purchase a home, lenders require you to purchase a homeowners insurance policy to protect the investment. But if you rent a home or apartment, you are usually not required to purchase a renters insurance policy unless your lease demands it.

Therefore, many renters choose not to buy a renters insurance policy because it seems like an unnecessary monthly bill that could be better spent on other things. But in reality renters insurance is usually very inexpensive and, if you end up needing it, could save you a lot of money and headaches in the future.

Here is what a typical renters insurance policy covers:

Personal possessions

What if someone broke into your apartment and stole your plasma screen TV and laptop when you were at a friend’s house? Would you have the money to replace these items?

Protection for your personal possessions is the number one benefit of renters insurance. By making sure you purchase the appropriate amount of coverage and by taking a detailed inventory of your possessions, you could have that TV back in place and a new laptop running in no time.

Renters insurance policies cover your personal possessions if they are damaged, stolen, or destroyed, depending on the “named perils” in your policy. These “named perils” may include fire and lightening, windstorm, smoke, vandalism or malicious mischief, and theft.

Personal liability

In addition to coverage for your personal possessions, renters insurance typically includes personal liability coverage in case someone is injured in your home.

For example, if you live in an apartment building and someone slips and falls down the stairs outside of your apartment, you will likely not be at fault. But if someone slips on a wet floor in your kitchen, you could be sued and made to pay that person’s medical and legal bills.

The liability coverage included in your renters insurance policy would likely help pay for the injured persons bills and will usually cover your legal expenses too.

Loss of use

Let’s say your apartment building becomes temporarily uninhabitable due to a fire. Your apartment is fine and none of your possessions are damaged, but you cannot live in the building until the damages caused by the fire have been fixed and the building is deemed safe to inhabit again.

Many renters insurance policies will pay your temporary living expenses above your normal monthly rent to stay in a hotel while the building is being repaired. This feature could end up saving you a lot of money if your apartment building is seriously damaged.

The exact coverage your renters insurance provides will depend largely on the policy you select. If you live in Ohio, Kentucky, or Indiana, and would like to explore your options for renters insurance, request a free renters insurance quote or call us at 877-441-6106 for immediate assistance.

As an independent agency, Burkhart Insurance Agency can help you compare quotes from several of the nation’s top insurance providers and select the coverage that makes the most sense for you. We look forward to hearing from you.

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