Whether renting for the first time or an experienced tenant, protecting yourself and your belongings with renters insurance is essential. Renters insurance offers valuable coverage against unexpected events for individuals who don’t own their residence.
What Is Renters Insurance?
Renters insurance is designed to protect individuals renting a home, apartment or other type of property. While landlords typically have insurance to cover the physical structure of the building, their insurance typically won’t cover a tenant’s personal belongings. Renters insurance may provide coverage for a tenant’s personal possessions in the event of covered perils, depending on the policy. Your policy may also offer liability protection, covering the tenant’s legal responsibility if someone is injured in their rented space.
What Does Renters Insurance Cover?
Policies typically includes the following three coverage components:
- Personal possessions coverage may help replace or repair possessions damaged due to a covered event, such as theft or fire.
- Liability protection coverage may help cover lawsuits for bodily injury or property damage for which you or your family members are responsible. Your policy may also include no-fault medical coverage, which can help pay for medical bills if someone is injured on your property, no matter who is at fault.
- Additional living expenses coverage may help if you cannot live in your home temporarily due to a covered incident, such as a burst pipe.
How Do Renters Insurance Claims Work?
Renters insurance may provide financial protection to tenants in the event of covered losses or damages. It involves selecting a policy with appropriate coverage limits for personal property and liability protection. Premiums are paid regularly, and a claim can be filed with the insurance provider when a covered event occurs. A deductible, the amount paid out of pocket, applies before the insurance coverage takes effect in most cases. After the insurance company assesses the claim, it compensates the tenant based on the policy terms.
When reviewing policy options, it’s essential to understand the coverages, exclusions and limitations. Your agent can help you compare policies to get the proper coverage.
How Much Coverage Do I Need?
Renters insurance is not legally mandated; however, landlords, housing associations and lenders may require a minimum amount of coverage. You can still benefit from coverage even if it isn’t required. To decide how much coverage you need consider the value of your possessions, how much of a deductible you can afford and whether you need any specific coverage based on your known risks.
Contact S&G Mitchell Company to discuss your renters insurance needs. We can ensure you’re covered against the unexpected.