What is Renters Insurance?
Renters insurance is an optional policy type that some renters do not even know exists. Others have a confused idea of what this policy is or what it covers. In general, renters insurance protects you as an insured policy holder from personal financial loss in covered circumstances. The purpose of renters insurance is to safeguard policy holders from uncompensated losses after claim events. Renters insurance includes provisions for personal property protection as well as liability coverage, both of which contain their own limits of coverage and deductibles.
Personal Property Protection
The personal property portion of a renters insurance plan protects you from losses to your personal belongings without compensation. There are many instances that could happen to any renter that are included in this part of a policy. For example, water damage from a leaking bathtub in the apartment above yours could lead to losses to your furniture or electronics. These types of losses are covered on your personal property plan. This is in addition to more commonly known coverage types, like fire, theft, and vandalism protection. This policy comes with a wide range of coverage for each covered renter. But there are significant exclusions policy holders should be aware of. Floods and hurricanes are not generally covered for example. However, many excluded events can be covered with riders or supplementary coverage. When putting a policy together, take into consideration the area you live in and the common risks you might encounter in your locality.
Liability coverage is another important part of a renters insurance plan. If you run into a civil liability situation following an accidental injury or other related event at your rented condo or house, your liability policy will help set you up with legal defense. If you are found liable for financial damages from medical bills, pain and suffering, lost wages or other expenses, your liability policy will pay out for the covered damages above your elected deductible, up to the limits of the policy. In most cases the limits of protection in a liability policy are higher than those in the personal property coverage, although renters are free to increase their coverage as needed to ensure their protection is sufficient for their particular circumstances.
Additional Benefits for Renters
There are additional significant benefits available to renters insurance policy holders, such as medical payments coverage that can be used in non liability situations, and loss of use protection for instances when a claim event has rendered your rented home unlivable. For example, if a fire sweeps through your condominium and you are forced to move out, this coverage can help take care of the cost of the move plus limited assistance for the additional cost of living at a new place. This is just a brief overview of renters insurance and how it works. You can get full details from simply getting a few quotes together and reading over the language of some policies, including benefits and exclusions of coverage.