A renters insurance policy is a group of coverages designed to help protect tenants living in a house or flat. Most standard renters’ policies do not cover damage caused by earthquakes or floods, although some companies may offer additional coverage for a surcharge. Renters’ insurance policies include limited coverage for medical payments in case guests are injured in their residence. When purchasing a renters’ insurance policy, you should be sure to select limits that cover you in the event of a total loss.
The central feature of renters insurance is the coverage of your personal belongings against the usual sources of unexpected damage and theft. Along with other pests, such as rodents, these are considered a maintenance problem and are not covered by your standard renters policy. Like personal property coverage, ALE only applies if your home is rendered uninhabitable due to a covered loss, i.e., one of the perils covered by your renters insurance policy. Below, we have listed some of the most common exclusions and coverage limits in renters insurance policies.
In addition to the four main coverages, renters insurance policies often offer other supplemental coverages. Renters’ insurance will rarely or never cover damage to your personal property from some specific perils, such as earthquakes, riots and pests. To be covered, they must be listed in the policy, in which case you could split the cost of renters’ insurance. We recommend that anyone renting a residence consider purchasing a renters’ policy as an affordable way to protect themselves from the financial impact of these events.
Renters’ insurance covers the costs associated with damage to or theft of your personal property, liability damage, emergency medical expenses for guests and additional living expenses if you have to relocate temporarily. The personal property and liability coverage provided by renters insurance will not protect you from all risks. If you are interested in purchasing renters insurance, you will have a wide variety of options, from established insurance names such as State Farm and Allstate to newcomers such as Lemonade. In the case of renters insurance, the policyholder can claim for damage or theft to their belongings, liability coverage or additional living expenses.
For example, renters’ insurance can provide additional coverage in case of earthquake or flood, two common and damaging risks that are rarely included in a standard renters’ insurance policy.