Floods; earthquakes; sinkholes; bedbugs and other pests; damage to your car; your flatmate’s possessions. renters insurance does cover your personal property, whether it is in the house, in the car or while you are travelling (if it is stolen or damaged by others). You can easily see how the cost of renters insurance is a drop in the bucket compared to what it would cost to replace a room full of your damaged belongings. Typical exclusions from renters insurance include natural catastrophes such as floods or earthquakes, belongings you use for business, pest damage and landlord negligence.
If you intentionally destroy your belongings and expect your renters insurance company to replace them, this is also excluded. The best renters insurance company for you will have coverage for the items you value most at an affordable price. If you have high-value items, such as jewellery or artwork, check with your agent or insurer to see if there is an endorsement or special coverage that can be included to adequately cover those items. Renters insurance does not cover severe weather events such as earthquakes, landslides, sinkholes and floods.
Renters insurance covers damaged or stolen property, liability costs if you are at fault for injury or property damage to others, and temporary housing costs if your rental unit becomes uninhabitable due to a covered event. You can usually increase your liability insurance limits by a few dollars a year, and it may be worth it. However, you can purchase renters’ flood insurance to protect your personal property in the event of flood damage. When comparing renters insurance quotes, be sure to check coverage limits, deductible amounts and whether there is a contents replacement cost, so you know you are getting the right value for the price.
According to III, insurers also do not cover nuclear, biological, chemical and radiological events. Renters’ earthquake insurance can be purchased as a rider to your existing renters’ insurance, or as a stand-alone insurance policy. A home inventory can also be useful in the event of a loss, so that the insurance company knows the type and value of your property. In your renters insurance policy, personal liability coverage will pay up to the policy limit for legal representation and settlement or judgment.
As with homeowners insurance, renters insurance coverage applies in the event of a covered peril.