What Does My Policy Cover?
Renters insurance does have a standard form, although not all renters elect the exact same coverage. The first part of any renters insurance plan is the personal property insurance. This coverage is set aside to safeguard the contents of your rented home. In other words, the things you own that you have in your rental are all covered under your personal property policy. There are many instances of covered events included in this coverage, like fire, theft, vandalism, certain damage from windstorms, and certain types of water damage (not flood damage).
Limits of Personal Property Protection
The limits of personal property renters insurance coverage are based on two financial numbers. The first is the total limit of coverage, which determines the maximum allowable payment for a claim. The second is the deductible, which represents the insured policy holder's own financial responsibility for any claim. The deductible effectively eliminate very small claims from ever being filed, which reduces administrative costs and keeps rates low for consumers.
Personal and Family Liability Coverage
Every renters insurance policy comes with contents coverage or personal property protection. But liability insurance is also available. A personal or family liability policy adds to the value of a renters plan by increasing its span of protection. Liability policies for renters protect them in instances where guests at the rental home get injured and require medical care, and in certain other cases where members of the insured family are liable for property damage to others.
Additional Available Benefits of Coverage
In addition to the basic parts of property and liability coverage, there are other available benefits to these plans as well. For example, renters insurance policy holders can elect to include relocation benefits to help cover temporary relocation expenses in the event of a covered loss rendering their rental home unlivable. This coverage could include expenses like hotel and restaurant bills and certain other costs as well. Another additional benefit is travel protection for personal property. Usually available as a percentage of the overall property policy, this coverage protects you from losses to luggage or other personal property when you are away from home.
Exclusions to Renters Insurance Policies
There are always significant limitations and exclusions to renters insurance plans. The most obvious limitation is simply the elected monetary limit of each area of coverage. Any costs beyond these limits are the responsibility of the covered policy holder. But other exclusions are certain event types which are not covered under a standard policy. Some of these events include hurricanes, floods, tornados, and earthquakes. If you live in an area prone to one or more of these types of events, it is likely that you can add a rider or endorsement specifically insuring you against these types of events causing damage to your belongings, or a separate policy altogether like a flood policy. When shopping around for renters insurance, it is important to be aware of exclusions to coverage as well as the coverage itself.