Renter's insurance
Renter’s insurance provides financial protection against the
loss or destruction of your possessions when you rent a
house or apartment. While your landlord may be sympathetic
to a burglary you have experienced or a fire caused by your
iron, destruction or loss of your possessions is not usually
covered by your landlord’s insurance. Because in most cases,
Renter’s insurance covers only the value of your belongings,
not the physical building, the premium is relatively
inexpensive.
By purchasing Renter’s insurance, your possessions are
covered against losses from fire or smoke, lightning,
vandalism, theft, explosion, windstorm and water damage (not
including floods). Like homeowners insurance, Renter’s
insurance also covers your responsibility to other people
injured at your home or elsewhere by you, a family member or
your pet and pays legal defense costs if you are taken to
court.
Renter’s insurance covers your additional living expenses if
you are unable to live in your apartment because of a fire
or other covered peril. Most policies will reimburse you the
difference between your additional living expenses and your
normal living expenses but still may set limits as to the
amount they will pay.
There are two types of Renter’s insurance policies you may
purchase:
-
Actual Cash Value
pays to replace your possessions minus a deduction for
depreciation up to the limit of your policy
-
Replacement Cost
pays the actual cost of replacing your possessions (no
deduction for depreciation) up to the limit of your
policy
With either policy, you may want to consider purchasing a
floater. A standard Renter’s policy offers only limited
coverage for items such as jewelry, silver, furs, etc. If
you own property that exceeds these limits, it is
recommended that you supplement your policy with a floater.
A floater is a separate policy that provides additional
insurance for your valuables and covers them for perils not
included in your policy such as accidental loss.
Copyright Insurance Information Institute.