What you need to know about renters insurance
More and more people are choosing to rent where they live these days rather than own a home or condo. Though you don’t have as much investment in your living space when you rent, you still want to protect your belongings by insuring them, and a renters insurance policy will do that.
What is it?
A renters policy is a type of insurance that protects your personal property when you live in a space that is owned by someone else. The policy also provides personal liability coverage and may pay for you to live somewhere else if your rented space is made uninhabitable.
Who is it for?
Anyone who rents a living space long term should have a renters policy. This includes a rented house, apartment, condo, fraternity house or dormitory.
How does it work?
Renters insurance works much like homeowners insurance in that it kicks in once you have an event that produces a covered loss. That could be a storm, fire, vandalism or theft. You must make a claim with your insurance company, which will make a determination as to whether you are covered and how much loss you have. Your insurer will either issue you a check for the amount of your loss minus your deductible, or it will pay for your actual expenses. Some examples of what might be covered are your personal belongings and the cost to live somewhere else while your living space is being remodeled.
Types of coverage
Renters policies are fairly standard in what they do or don’t cover. Most cover damage from fire, hail, wind, rain, vandalism and theft. They also provide personal liability coverage to protect you from things such as a visitor falling in your apartment or your dog biting someone while on a walk.
The major benefit of having a renters policy is that your belongings are protected when you are living in a dwelling owned by someone else. Another advantage to the insurance is that it is very affordable and usually only costs a few hundred dollars a year.