What is renters insurance?
Renters insurance is a liability coverage similar to the protection of homeowners insurance, providing financial assistance when dealing with the loss of personal belongings when living in a non-owned dwelling. Also known as tenants insurance, this is a policy that will cover scenarios that involve theft of fire. Rather than paying for the repair or replacement of the physical structure, renters insurance addresses the contents of the structure. The lower coverage inclusions make this policy less expensive than traditional homeowners insurance. It is not required by law, but some landlords or lease agencies will require purchasing this coverage before extending a lease contract.
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When do I need to be aware of renters insurance?
Anyone who intends on living in an apartment, condo, or other dwelling that is not under their ownership could consider a rental policy. For some college-age students, a parental homeowner policy may extend coverage to dependent possessions, making a separate policy unwarranted. Also, those who have very few possessions with little value may not need insurance. This insurance is good for anyone wanting to have their furniture, electronics, clothing, and other possessions covered in the event of a break-in or fire damage.
What is important to know about renters insurance?
A renters policy will issue reimbursement funds for the destruction or loss of personal items. There are several covered events, such as fire, explosion, smoke, vandalism, theft, lightning, etc., where the policy would take effect. The policy will also cover your items when away from the residence. There are some other important items you should know about renters insurance:
- Policies typically pay out according to replacement costs or the actual cash value of the belongings.
- Renters coverage may also provide living expenses to pay for your lodging, meals, and other costs of living while your home is being repaired.
- Renters insurance is also effective liability insurance against lawsuits from guests who experience property damage or bodily injury while in your home.