Renting instead of buying a home or apartment gives you added freedom and less responsibility, but it doesn’t mean that you’re not liable for anything. The landlord’s insurance covers the building itself, but as the tenant, you are responsible for purchasing your own renters insurance plan to cover your personal belongings.
So, what does renters insurance cover?
There are many plan options available with renters insurance. These plans can cover expenses for:
Personal property
Your personal property is covered in the event of theft or an incident that resulted in damage. Living in a rental property, you’re 25% more likely to experience a burglary than those who own a home, according to esurance. This coverage can even extend outside of the rental property. For instance, if property was stolen from your vehicle while it was parked outside the residence, you may be entitled to reimbursement.
Personal liability
If someone is injured in your rental property and takes legal action against you, personal liability coverage takes care of the legal costs involved. This area has various levels of coverage, so be sure to note how much money can be allocated for these costs when choosing your plan.
Medical payments
As an extension of the personal liability coverage, medical payments can also be covered if a guest is injured at your rental home. This coverage does not typically cover personal medical expenses—these are costs your health insurance would be responsible for.
Damage to another person’s property
Your property insurance does not only apply inside your rental home. Whether you damage another person’s property inside your rental home or at his or her home, your insurance can cover those expenses.
Additional living expenses
In the event that your rental home is damaged due to a covered accident or natural disaster, your renters insurance handles the expenses for you to find a temporary place to stay. This coverage is usually up to a certain limit, so be sure to note that in your plan to help you be better prepared in case of emergency.
What does renters insurance cost?
The price of renters insurance will vary depending on what types and limits of coverage you may require, how many persons are on your plan and where you’re living. You can find renters insurance plans for as low as $10 per month, but if you choose a cheaper option, be sure it covers all your needs. If you’re receiving far less coverage to save a few dollars per month, you may end up spending more in the long run if you do encounter property damage or liability situations.
What disasters or incidents are typically covered?
- Fire
- Lightning
- Strong winds or hail
- Explosion
- Community riots or violent uprisings
- Aircraft
- Vehicles
- Smoke
- Vandalism or intentional property destruction
- Burglary
- Freezing
- Damage from the building’s glass or safety glazing material
- Volcanic eruption
- Falling objects
- Weight of ice, snow or sleet
- Water-related damage from home utilities*
- Electrical surge damage
*Be aware that renters insurance does not normally cover flood damage, but in the event that an indoor pipe bursts and damages your property you would be covered.
Additional coverage options:
Replacement cost coverage
If your personal property is stolen or damaged, most plans will offer “at actual cash value” reimbursement. This only provides you with enough money to cover the cost of the item minus the depreciation for however many years you owned it. Replacement coverage may cost a bit more for your plan, but will pay the exact cost to replace that specific item—which you must actually do with that money.
Sewer or drain backup coverage
This is definitely a problem you never want to encounter, but in the event that it does, your renters insurance has you covered.
Earthquake coverage
This type of disaster is only relevant in certain states, but if it’s a concern for your area, be sure to add it to your plan.
Insurance riders
Insurance riders adds extra insurance on valuable items, such as expensive jewelry or collectibles.
You never anticipate being involved in an emergency situation where property is damaged or persons are injured, but in the event that it happens, it’s better to be prepared and insured. Be sure to ask your agent, “What does renters insurance cover” when choosing your plan to ensure you’ll be taken care of.
If you do require property damage assessment and repair, give Bloomfield Construction a call. We’ve been in business for more than 25 years, and our certified team proudly specializes in insurance repairs. We’re available 24/7 to help you start putting your home back together day or night.
