What Does Renter’s Insurance Include?
Even if you do not own a home to insure, you still need to consider what you need for insurance. Renter’s insurance can help in the event of unexpected situations. If a visitor is injured or a break-in occurs, renter’s insurance will help to protect you and your possessions.
Personal Property Coverage
People often do not realize the value of what they own. The cost adds up quickly when you add up all of your possessions and consider what it would cost to replace them if you lost everything. Personal property coverage can help to cover your belongings if they are damaged in a fire or if they are stolen.
Protection usually applies to certain risks, also called perils, such as fire and theft. If someone breaks into your rented home and steals anything or if there is a fire and your belongings are ruined by the resulting damage, personal property coverage may help to pay the cost of replacing your items.
Make sure you know your coverage limits as there is a maximum amount that your policy will pay out for the replacements. Read your policy carefully and speak you’re your insurance broker if you have any questions about the coverage.
There are some different choices when you purchase a policy:
• You will set coverage limits that will protect your belongings. It is a good idea to make a home inventory and itemize everything. By the item write down the cost or approximate cost so you know what it would cost to replace.
• Some policies provide actual cash value protection. This means that items will be covered up to their current market value.
• Other policies provide replacement cost coverage. This will help you to replace items at the retail price.
Personal property coverage does not protect everything you own or it only protects it up to a maximum value. Items such as jewelry and coin collections have limited coverage with a standard policy and if you have such items you may consider adding them to the policy under scheduled personal property coverage. To do this, will need an appraisal that shows the value of the item so that you can get the necessary amount of protection.
Liability Coverage
A renter’s insurance policy can also include liability coverage. If you are found legally responsible for injuries to other people or damage to their property, this coverage can protect you from having to pay damages out of your own pocket.
If somebody trips and falls in your home they may hold you responsible for medical bills. In another instance, your child may accidentally throw a ball through a neighbor’s window. Liability coverage may help to cover the costs of the damage.
Again, there will be limits that the policy will pay out. Find out what they are and if you feel you may benefit from having higher limits, talk to your agent to see what is available.
Additional Living Expenses
Additional living expenses will be handy if something happens to the home and you are unable to live in it. If the home is damaged by a fire and you have additional living expenses on your renter’s insurance, it will help you to pay increased costs while you are out of the home. It may cover food and/or hotel depending on the amount of coverage you have.
Other Considerations
Keep in mind that, as with any insurance policy, you will likely need to pay a deductible. Your deductible amount depends on the premium that you pay for insurance. A higher deductible means a lower cost for the policy but will cost you more if something happens. You can lower your deductible by paying a slightly increased premium.
If you have questions about renter’s insurance, the professionals at Allstate Insurance Company will be able to help you out. You can find an agent or get a quick quote online!
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