What Does Renter’s Insurance Protect You From?

Renter's Insurance

Many landlords now require tenants to hold renter’s insurance. The good thing is renter’s insurance is inexpensive and easy to buy. Why is it important to have renter’s insurance as a tenant?

Theft Coverage 

The value of your possessions is likely higher than you think it is. The average renter has $20,000 worth of possessions. If your unit is broken into and things are stolen, your landlord’s insurance will not cover you.  Before you sign up for a policy, make a list of every item you own and its value. This will help you avoid under-insuring.

Valuable Articles

Predictably, fine art and antiques as well as family heirlooms are difficult to replace and more expensive in value. This also includes things like musical instruments, electronics, and fine jewelry. For your more valuable items and collections, you can retain valuable articles coverage for the proper protection.

Replacement Cost

Renter’s insurance will provide the replacement cost to completely replace lost items, regardless of the current value. You could opt for a cash settlement instead of the replacement value if you do not intend to repair or replace the items.

Covered Events

Renter’s insurance protects you in the event of many named perils, including fire, theft, vandalism, plumbing and electrical malfunctions, and some weather damage such as hail. Floods are not covered under renter’s insurance, but you could add a rider for protection. A water backup option can also protect you against damage caused by backups from sewers and drains, which could lead to costly repairs.

Temporary Housing

If your unit becomes uninhabitable because of a covered event, your insurance will pay for temporary housing. This includes hotel bills, restaurant meals, and temporary living situations. Flood or water backup may cause your unit to become uninhabitable. For added assurance that your belongings are safe, you should consider a rider for flood protection and water backup as these are more likely to be major events.

Liability Coverage

Another important aspect of renter’s insurance is liability coverage. You are protected from a set amount of liability for injuries or damages that happen in the home. Damage that you, your family, or your pets cause to others is also covered. The insurance also pays for all court judgments and legal fees, up to the policy limit.

For all of your property and casualty insurance questions, go to Redwood Agency Insurance.