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What You Should Know About Renters Insurance

If you are renter, then the landlord assumes the majority of the responsibility for maintaining the property. This includes insurance for the property. It is important to remember that the landlord’s insurance will not cover loss or damage to your personal property for any reason, this includes natural disasters, theft, or fires. This is where renters insurance comes in. Renters insurance was created to provide coverage for your personal belongings.

Why it is Wise to Purchase Renters Insurance?

The Insurance Information Institute states that the average monthly cost for renters insurance in the United States is about $15. Because this type of insurance is typically inexpensive, it’s viewed as a wise investment. It is a small price to pay considering what the insurance covers. The alternative would be paying for everything out of your pocket, which can easily be in the thousands. This includes living expenses at a different location in the event you are displaced due to damage to the property. Despite the risks, it is estimated that only about 40% of renters have renters insurance.

What Does the Insurance Cover?

Renters insurance typically covers the following events:

  • Damage from the weight of sleet, ice or snow.
  • Fire or lightning.
  • Falling objects.
  • Windstorm or hail.
  • Volcanic eruption.
  • Explosion.
  • Theft.
  • Civil unrest or a riot.
  • Malicious mischief or vandalism.
  • damage from an aircraft.
  • Smoke.
  • Damage from a vehicle.
  • Accidental damage from water or steam, a household appliance, plumbing, a heating and air conditioning, and fire sprinkler systems.
  • Sudden failure, bulging, cracking, or burning of a hot water system, fire protective system, or an air conditioning system.
  • Freezing of a household appliance, plumbing, a fire protective system, or an air conditioning system.
  • Accidental and sudden damage from unnaturally produced electric current. This does not include loss of electronic components such as tubes or transistors.

What’s Not Covered?

Renters insurance will not reimburse you for damage resulting from floods or earthquakes. Earthquake insurance can be added to your renter’s insurance policy as a separate addition in some cases. Flood insurance can be added to most homeowners’ insurance policies. You can also purchase this type of insurance separately through the National Flood Insurance Program.

Other Rental Insurance Protections

Another excellent benefit of renters insurance is that it provides liability and additional living expenses coverage. While often overlooked, liability insurance at your place of residence is extremely important. It will provide coverage in the event an individual is hurt or has their property damaged on your premises due to your negligence. It also provides coverage for you and your family in case you accidentally hurt someone. This type of insurance will also provide coverage if your animal bites someone or another animal on or off your property. Renters liability insurance usually starts at approximately $100,000 and covers legal fees and damages. If the property you are renting becomes uninhabitable after a disaster, additional living expenses coverage will reimburse you for hotel bills, meals, and other related costs while your home is being repaired.

Get a free quote today on your renter’s insurance.

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