What is Renters Insurance?
Renters insurance is similar to a homeowners insurance policy, but it’s specifically designed to meet the needs of renters. Renters policies usually don’t provide coverage for the building that a renter lives in, since it’s typically the landlord’s responsibility to insure their building. Renters do, however, need protection for their personal belongings and in case they’re involved in a liability lawsuit. A renters policy can help with both of these needs.
What Coverages Are Included in a Renters Policy?
In general, renters policies include three main coverages:
- Personal Property Coverage, which usually insures personal belongings against theft, fire, and other perils
- Liability Coverage, which may provide financial protection if the policyholder is held responsible for a covered incident
- Additional Living Expenses Coverage, which might help cover living expenses if a rental unit is uninhabitable due to a covered incident.
While these are included in many renters policies, the coverages, terms, and conditions can vary a lot. Therefore, it’s important to carefully review a renters policy to determine precisely what protections it affords.
Who Should Consider Getting a Renters Policy?
Anyone who rents an apartment, condo, townhome or house ought to consider getting a renters policy. Even people who lease one room within a house may want coverage.
For, without a renters policy, renters can be exposed to financial costs they can’t afford. Few renters could afford to replace all of their belongings or the legal costs associated with a liability lawsuit. A renters policy with robust coverages can help make sure a renter won’t have to pay these expenses if they experience a covered incident.