What Types Of Coverage Are Included In Renters Insurance?
Smart homeowners know how important it is to have a homeowner's insurance policy. However, it is just as important to carry a home insurance policy if you are renting a home. While rental property owners often carry insurance that reimburses them for the loss of their rental units, they are not required to carry insurance to reimburse their tenants for the loss of belongings should a fire, flood, theft or other tragic event occur. If you carry renters insurance, you can be reimbursed for some of your losses. These are some of the different types of coverage that are normally included in a renters insurance policy.
Personal Property
Renters insurance give you coverage for the loss of personal belongings during a covered event. This includes furniture, clothing and other property that is stolen or destroyed. It also covers the loss of personal belongings that are located outside on the property you are renting.
Also, if your vehicle is broken into and items are stolen while it is parked on your rented property, this will be covered by renter's insurance as well. However, any physical damage that occurs to your car would instead be covered by your automobile insurance policy.
Liability Coverage
If a guest becomes injured inside your rental home or on your rented property and you are found to be at fault, liability insurance coverage will cover this event. This includes the injured person's medical expenses, lost wages and even court costs if that person brings a lawsuit against you.
Depending on the type of liability coverage you purchase, it may also cover you if you or someone in your household causes damage at another person's home. For example, if your child accidentally breaks a window at a neighbor's home, your liability insurance may pay for the cost or replacing the window.
Living Expenses
If your rental home is deemed unlivable due to a fire, flood or another disaster, it will be necessary for you to find temporary housing until the rental home is repaired. Renters insurance also provides coverage for the cost of staying in a hotel, buying meals and other living expenses that are caused due to the damage that occurred to your rental home.
Renter's insurance is especially important for those who plan on renting long term. The small price you pay for your premiums now will benefit you greatly if you are faced with a situation in the future when you need the coverage it provides.
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