Homeownership is still a dream for many, but renting has its benefits—you don’t have to worry about the building’s upkeep, risk going into default on your mortgage or be stuck in a place for too long. However, even as a renter you still need to
think about financially protecting yourself, as well as your belongings. The way to do that? Renters insurance!
Renters insurance covers your belongings from all the possible mishaps listed in the policy such as fire, smoke, water damage, windstorms, lightning, theft and vandalism. And even though some think that their stuff isn’t worth enough to get renters insurance, they should think again as even the simplest things like a basic wardrobe and some pieces of furniture don’t come cheap. But renters insurance covers more than just your personal belongings at home:
- Medical expenses for people injured on your property.
In the event a visitor is injured at your apartment, renters insurance will pay the medical bills up to the policy’s limit.
- Damage caused by you or a family member to others.
The policy provides liability insurance to cover injuries or property damage you or your family members cause others. For instance, if you break a neighbor’s fancy wine decanter, your policy could pay to replace it.
- Legal costs when sued.
There is also the scenario where someone suffers an injury at your place and they decide to sue you. The liability coverage on a renters policy would pay your legal costs and court judgement fees, also up to the policy’s limit.
- Dog bites.
It can also be your puppy behind a visitor’s bad injury, in which case, renters insurance can take care of the medical bills. However, even though most policies provide this type of coverage, check your policy as occasionally, insurers exclude or limit coverage for dogs.
- Items you’ve borrowed or rented.
The renters insurance policy covers things ‘in your possession,’ including those you borrowed or rented.
- Items away from home.
The things you own are covered away from home too, for the perils listed on the policy. In the event someone steals your laptop while you’re vacationing, you can call your insurance agent or company to find out what steps you need to take to receive compensation. The “off-premises” coverage is usually limited to a portion of your total coverage for personal belongings.
- Hotel costs after a disaster.
If the worst is to happen and a fire or a heavy windstorm destroys your apartment so badly that you need to stay somewhere else during repairs, you won’t have to couch surf. Renters insurance policies include “additional living expenses” coverage if your place become uninhabitable after a disaster. The coverage would reimburse you for extra expenses, such as the cost to stay in a hotel or rent another apartment.
