If you’re renting rather than buying your home, don’t assume that your landlord’s insurance policy covers you, too. The only thing that the landlord’s insurance takes care of is damage to only the property. It does NOT protect anything personal of yours or your liability. If you want that type of coverage, you need to get renters insurance.
There are various coverages you can get with renters insurance. These include:
Smoke and Fire
Hail, windstorm and lightening
Ice, sleet and snow
Electrical surge damage
If your rental property is impossible to live in because of these damages, the renters insurance will cover rental payments of somewhere else while the damages are being repaired or you find a new place to live. The coverage is usually limited to 30 to 40 percent of the full policy value. Usually a time limit comes with this coverage, too, and when you reach that limit your expenses aren’t covered any more. Be sure you understand exactly what you can expect in that regard when you take out renters insurance.
Another great coverage offered with renters insurance is liability. This means that if someone gets hurt on your property, you’re protected up to your limit of liability. This breaks down to the person’s medical costs and even legal costs if you’re sued.
You should realize that a standard renters insurance policy doesn’t cover damages from floods and earthquakes because these things usually happen only in certain areas. If you reside in such an area, you’ll have to get a separate coverage for these incidents. The same applies for hurricanes.
When you’re getting a renters insurance quote, be sure to ask if the policy covers actual cash value or only the cost to replace things. Actual cash value is when possessions lost will be covered for their value at the time they were damaged or stolen rather than what you paid for them originally. Replacement cost protection works best for things with fast depreciation, like computers and other electronic equipment.
When you’re ready to purchase renters insurance, be sure to check around before committing to a company. You’ll find that some rates are more competitive than others. Most companies will offer you reduced rates when you install such things as burglar alarms, fire and smoke detectors as well as fire extinguishers.