Renter’s insurance, also known as HO-4, is a type of insurance policy covering losses to a renter’s personal property and protects them from liability claims. Damages to the structure and frame of the building are the responsibility of your landlord. Renter’s insurance helps provide coverage for anything from an entire house to a studio apartment or mobile home.
A renter’s insurance policy includes different parts: personal property, medical payment, loss-of-use, and personal liability coverage. Keep reading to learn the different parts of a renter’s insurance policy.
Personal Property Coverage
This is a standard part of renter’s insurance, and it helps provide coverage for the cost of replacing your personal property if it’s stolen or unexpectedly destroyed. This protection generally applies to a covered peril such as fire, smoke, hail, explosion, and other named hazards. Your insurance provider will reimburse you for your personal property even if they get stolen or damaged.
Personal Liability Coverage
This coverage protects you if you are found liable for damage experienced by someone else. The damage doesn’t only apply to bodily injury; it could also mean property damage. When you are liable, your policy will cover up to the maximum limit of the renter’s insurance coverage you purchased. Also, if you are taken to court over injuries or damage, the policy will pay court judgments and legal fees.
Medical Payments Coverage
Suppose someone suffers an injury while in your home; this coverage pays for the costs of their medical expenses up to the limit on your renter’s insurance policy, regardless of negligence. The coverage also extends to cases where you are not on your property.
Keep in mind that you will only be required to cover the victim’s medical expenses after their health insurance covers their part. So, ensure the victim files a claim with the insurance provider first.
If your rental unit or apartment is damaged and deemed uninhabitable for a certain period while repairs or renovations are being made, loss-of-use coverage will cover the additional expenses you may incur for residing elsewhere, up to your policy’s limits. Depending on the insurance company, you will either pick a hotel of your own or get options from the hotels nearby.
If you have any questions about renter’s insurance, don’t hesitate to contact Redwood Agency Group to speak with an experienced insurance agent.