Renters insurance is an insurance policy that can cover theft, water damage, certain natural disasters, bodily injury and more in a rented property. If 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. Here, we have listed some of the most common exclusions and coverage limits in renters insurance policies. Should your flat become uninhabitable, your renters insurance will help pay for the increased costs of living away from home through additional living expense (ALE) coverage.
The best way to determine the amount of insurance you should take out for your personal property is to draw up a detailed list of your belongings and their replacement cost. If your worldly possessions are reduced to a futon, a coffee pot and a toothbrush, you probably don’t need renters insurance. Renters’ insurance policies do not usually cover the cost of damage associated with your roommate’s belongings. If you already have renters’ insurance, read on to see what kinds of events a typical renters’ insurance policy covers.
Like homeowners, renters must take out separate flood insurance to be covered for flood damage. Renters’ policies usually cover your belongings, whether your rental home is burglarized, items are stolen from your car or while you are on the road. Earthquakes are another catastrophe that is not covered by most renters insurance policies. Renters’ liability insurance may also pay out if your dog bites a visitor, neighbour or stranger, either on or off the property.
You may also want to consider new insurance companies, such as Lemonade and Toggle, which offer quick coverage, easy-to-use applications and affordable rates. Renters insurance can also provide compensation for alternative living arrangements in the event that your rental unit or rented home becomes uninhabitable due to storm damage or a flat fire. Renters’ insurance protects tenants from the costs of unexpected personal injury or theft and legal liability. 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, if someone is injured in your flat and the injury is deemed to be your fault, that person can file a liability claim with your insurance company to cover the costs associated with the injury. Renters insurance usually covers legal representation in a lawsuit and money awarded to the other party.