Renters insurance is an insurance policy that can cover theft, water damage, certain natural disasters, bodily injury and more in a rented property. Whether you rent a flat, a house or even a student residence, renters insurance is recommended to protect your space and belongings in the event of a covered accident. Most renters insurance policies do not cover the costs of damage associated with bed bugs, with limited exceptions. If you own expensive individual items, you should be sure to purchase a renters insurance policy where you can increase the sub-limits to ensure that you are fully covered.
The liability portion of your renters insurance protects you if you are responsible for someone else’s injuries or property damage. If you have expensive jewellery, such as an engagement ring, diamonds or collectible watches, your renters insurance is likely to limit coverage for it. One caveat is that insurance companies often include in their policies that they will only cover the expenses of an attorney of your choice. When deciding on a renters insurance policy, you have two options as to how you would like to be paid for losses – actual cost or replacement value.
Now that you have a better idea of what renters insurance covers, take a look at the most common exclusions and what you can do about them. If the coverage you need is not available as an endorsement, you may need to purchase an additional, separate insurance policy to make sure you are adequately covered. For example, renters insurance may offer additional coverage for earthquakes or floods, two common and damaging risks that are rarely included in a standard renters insurance policy. A claim is a request that policyholders make to their insurance company for compensation for a covered loss.
Your landlord most likely has insurance that covers the property, but the landlord’s insurance coverage does not protect your belongings in the event of loss or theft. There are a number of optional add-ons, or endorsements, that a tenant can add to their policy to strengthen their coverage. If you are interested in taking out renters insurance, you will have a wide variety of options, from established insurance names, such as State Farm and Allstate, to new companies, such as Lemonade. Be sure to photograph the items and provide your insurance company with a receipt for what you paid for them.
The central feature of renters insurance is coverage for your personal belongings against the usual sources of unexpected damage and theft. All decisions regarding any insurance product, including approval of coverage, premium, commissions and fees, will be made solely by the insurer underwriting the insurance in accordance with the criteria in effect at the time.