Renter’s insurance is a type of insurance that covers personal property. This type of insurance protects from loss due to fire, vandalism, and other disasters for those who are not yet homeowners.
Renter’s insurance can cover a variety of personal property and valuables in many different situations and circumstances. If anything were to happen to a policyholders property while traveling on vacation or when leaving valuables in a car, then the policy protects against that loss. Not only does a renter’s insurance policy cover a portion of the expenses to replace property stolen from a vehicle it also covers the property even if it was stolen somewhere away from the renter’s dwelling, such as a bicycle stolen from a bicycle rack at a school.
Not only does a renter’s insurance cover the renter’s property it can also provide coverage for a third parties property as well. With a property damage liability clause, a renter’s insurance policy could pay for any damage to goods damaged accidentally in a department store. It can also cover damage to another person if they happen to be over for a visit and they get injured, a renter’s insurance policy can cover the medical costs associated with that injury as well.
Be sure to read the policy in detail because it does not cover everything. Typically, a renter’s insurance policy will not cover damage caused to personal property by a third party. For example, if someone were to ram their car into your garage door, that is not covered by your renter’s insurance.
There are also coverage limits to consider in addition to items that are not covered. It is up to the policyholder to determine how much coverage is needed in both liability coverage and in personal property coverage. Typically, the low-end coverage options start at around $100,000 liability with $10,000 personal property, but these limits vary, and it all depends on how much one is willing to spend on monthly premiums.
Also, keep in mind that coverage options are limited from state to state as well. For example, California renter’s insurance does not cover damage caused by an earthquake. A separate policy is required for certain damages in certain states. Similarly, flood insurance is a separate requirement in Louisiana from a renter’s insurance policy.
Loss of use clauses is commonplace in a renter’s insurance policy. A loss of use would apply in the event a rental unit becomes unlivable due to damages from either a natural event such as a storm or a fire due to faulty wiring. In those examples a renter’s insurance policy can provide accommodations for a renter at a hospitality location such as a hotel. This loss of use can also apply even if your apartment unit becomes unlivable due to utilities being shut off for an extended period to make repairs to the structure.
Renter’s insurance policies are also needed for rent-to-own homes. Are you planning to rent-to-own a home? If so, look at our listings of rent-to-own homes available in your area today and be sure to consider getting a renter’s insurance policy for your rental.