What Does Renters Insurance Typically Cover?
Many renters shy away from renters insurance, thinking it is just another expense but in actuality, it is an investment. Renters insurance is an inexpensive way to protect your belongings when you rent a home and it costs a lot less than it would to replace everything you own in the event of the unexpected. But what exactly does renters insurance cover?
Renters insurance protects your property. Your personal items are protected in case they become destroyed. Typical renters insurance policies will cover:
• Fire damage
• Smoke damage
• Hurricane/windstorm damage
• Lightning damage
• Water discharge damage, like when water sprinklers go off
Most policies cover stolen items under theft even if it doesn't happen in your rented apartment. When shopping for a policy, be sure to ask about this.
Say a friend visits your home and falls down by accident while there. If they decided to sue you for damages, renters insurance actually covers that. This is called personal liability.
Other personal liabilities covered by renters insurance include:
• Swimming pool injuries
• Dog bites
• Falling trees
• Injured workers
• Intoxicated guests who hurt themselves in your rented place
Accidents Caused by You
If you leave a candle burning and your house or apartment starts on fire, renters insurance might cover that. It is important to clarify this with your insurance agent before you sign on.
Additional Coverage for Living Expenses
If you have to unexpectedly evacuate your rented space and stay at a hotel for some time, your renters insurance policy may cover those costs too.
What Does Renters Insurance Not Cover? Renters insurance covers a wide range of things but there are a few it does not. Renters insurance does not cover:
• Pests. Renters insurance does not cover the cost of an exterminator.
• Damage to the building. It only covers the items you own – not damage to the building that holds your belongings.
• Your roommate's belongings. It only covers yours so encourage them to get their own.
• Items that are not documented. Keep receipts of all of your personal items so you can prove their existence and cost in the event they are lost or damaged and you need to file a claim.
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