Due to the prevalence of renters in the country, many different insurance companies offer renters’ insurance. If you don’t decide to take out renters insurance, keep in mind that it is a relatively inexpensive form of protection. Flood damage is not covered by renters’ insurance, nor does it cover earthquakes. In contrast, a replacement value renters insurance policy means that your insurer will cover the cost of repairing or replacing your belongings at their current price.
Just as your renters’ policy covers your belongings when you are travelling, it usually covers them when they are stored somewhere other than your own home. Renters insurance coverage can protect you from financial stress or devastation if a covered loss occurs. No, but some landlords require proof of renters insurance before signing a lease, or within a certain period of time. When deciding whether you need renters insurance, you should think seriously about your ability to cover certain unexpected expenses that may arise.
Even if you feel confident that you can replace the contents of your flat if you need to, basic liability insurance can prevent financial disaster. Insurers evaluate factors such as your outstanding debt, your payment history, the length of your credit history and whether you have any bankruptcies or accounts in collection. While it may seem like an unlikely scenario, if someone ends up needing extensive medical care that you are responsible for, these costs could easily bankrupt you if you don’t have insurance to help pay these costs. A renters insurance policy provides insurance for your personal belongings (sometimes called “contents insurance”) and liability coverage for any damage or injury for which you are held legally responsible.
Renters’ insurance usually covers legal representation in a lawsuit and money awarded to the other party. Insurance companies will also consider your belongings, your location and your claims history, among other factors, when determining your premium. The amount of renters insurance you need depends on how much stuff you have and the value of your savings and other assets. Although renters insurance is quite broad in its scope of coverage, there are some things you may be surprised to find that most renters insurance policies do not cover.