The Purpose of Renters Insurance
Renters need financial protection just like homeowners. That’s why renters insurance is there to help tenants protect their belongings. This is important to have because your landlord’s policy doesn’t protect you or your belongings.
Your landlord should have an insurance policy that covers the property. But that policy will only protect the landlord’s items and building. It will not extend coverage for anything belonging to the tenant. A solution is to get renters insurance, which offers a cost-effective way to protect your personal items and to gain liability protection.
This type of policy helps tenants who live in apartments, town homes and single-family homes. In short, this policy will compensate you for personal belongings damaged in a fire, or from theft or vandalism.
Liability coverage also provides compensation for accidental damage you inflict upon someone’s property. For instance, a flood in your unit might cause damage to another unit. Coverage also provides liability protection should you face a lawsuit by someone hurt on your property.
To get the amount of coverage you need, take an inventory of your belongings. This will help you decide if you want a “”replacement value”” policy that will compensate you for the current value of your belongings. An alternative is the “”fair market value”” policy that takes deprecation into account when compensating you for damaged or stolen items.
Speak with an insurance agent to learn more about your renters insurance options.