What Is Renters Insurance?
Unlike homeowners insurance, which has a dwelling or structural coverage, renters insurance is a policy that protects the renters from taxing, over-budgeted expenses in the event of unexpected occurrences like fire or robbery.
What Does It Cover?
Renters insurance policies cover expenses such as
- the replacement of personal property,
- loss of use in the event of displacement from your home or daily activities, and
- liabilities related to an injury sustained by visitors to your rented home.
In such cases, you can file a claim with your provider and receive benefits based on the amount agreed. It is, however, possible to get additional coverage, as most providers usually offer add-ons to your policy, also known as endorsements. These are great for extra protection and assurance over and above your existing policy.
Types of Renters Insurance Coverage
The following are the three main coverages offered by a standard renters insurance policy.
- Loss of Use: It helps cover extra expenses that might arise after the occurrence of a covered event. For example, if after a robbery or fire you’re displaced from your home and have to pay for a hotel room/meals, your policy will cover these unexpected costs.
- Personal Property: This type of coverage is important for many people, as it gives them the assurance of a definite replacement of their personal belongings after an unexpected but covered event.
- Liability: This covers expenses (medical and legal) related to injuries sustained by a third party within your property, even if you aren’t at fault.
Note that while buying renters insurance, there are two options that you might consider
- Actual Cash Value (ACV)-which is cheaper since it only covers the depreciated value of a renter’s personal items,
- Replacement Cash Value (RCV)- which covers the entire cost of replacing the property at today’s market value without deducting depreciation.
Is Renters Insurance Really Worth It?
Having renters insurance may be mandatorily required by your landlord so that they are not held responsible for any injury within your rented home. Besides, having adequate renters insurance will protect your personal items from events that are not covered by your landlord’s insurance. Even when not required by your landlord, renters insurance will give you peace of mind and protect you from financial liabilities that arise due to unexpected future losses.
If you’re skeptical about committing too much money to a renters policy at first, shop around for reasonable prices offered by trusted providers. At Young Insurance, we can help you determine the factors that affect your renters’ insurance premium rates. Schedule an appointment today and find out how we can help you protect your home and keep your insurance premiums more affordable.