It is a common misconception that your landlord’s insurance will cover everything within the property. In actual fact, the landlord’s insurance will only cover what the landlord owns, which essentially means the land and the physical structures on it.
Anything within the building on the property will be excluded from cover. This is where Renters Insurance comes in handy.
Whilst most people understand how imperative it is to have home owners insurance, they may not consider that as a tenant you also need to protect yourself and your belongings.
Generally, just like other forms of insurance, the customer (or in this case the tenant), will choose their amount of coverage and then be required to pay a monthly premium. Each insurance agreement varies and this is why it’s important to speak to your landlord to gain a full understanding of your rental insurance agreement.
Never assume something is covered. If it is not written in the contract, it isn’t covered! Don’t be afraid to ask questions and ensure you are covered for your circumstances.
Here is a list of some of the common areas that renters insurance covers. Note that each agreement is different and this is simply a generalisation.
According to esurance.com, not all renters policies are the same. But in general, renters insurance can cover:
Renters coverage can help you replace your belongings after a covered incident in your home, such as a fire or burglary. You may be surprised at how much everything in your house is worth when you add it all up.
The average renter owns about $20,000 in personal property and is 25 percent more likely to be burglarised than someone who owns a home.
And the beauty is that renters coverage protects your belongings anywhere in the world — whether they’re stolen from the trunk of your car or out of your backpack at a Paris hostel.
If you’re sued because someone was hurt in your apartment or because you (or someone covered under your policy) accidentally injured someone, renters insurance can provide liability coverage for legal costs. The limits of personal liability coverage vary, so check to see what your limits are when you get a quote.
Your renters policy can also help cover medical payments up to a certain limit if a guest or visitor is injured on your property — though it generally doesn’t cover injuries to you or other household members.
Additional living expenses
If you can’t stay at your place because of an incident, home rental insurance can help pay for a place to stay, among other things. Loss-of-use coverage, otherwise known as relocation expenses or additional living expenses, could help cover living costs up to a certain limit.
Thanks to www.freefrombroke.com