What is renter’s insurance really all about? Renter’s insurance is protection intended for anyone who rents an apartment, home, or other live-in arrangements. Many tenants tend to think their landlord’s insurance will cover the damages to their personal possessions, but it won’t. Your landlord’s insurance only covers the building you live in. Purchasing a policy protects you if your items end up in the hands of criminals and more importantly, if there’s a disaster like a fire that ravages your home.
Do you need more information on renter’s insurance before you decide on purchasing a policy? Here are 3 things you may not know about your homeowners or renters coverage.
1. Personal Liability
Renter’s insurance does not just cover your property. It can protect the tenant from personal liability if someone hurts themselves while in the property being rented or if someone else’s personal property is damaged while at the rental property. The liability coverage in a customer’s policy can protect them from being sued for medical bills and other costs.
2. Alternate Living Expenses
Renter’s insurance can also cover alternate living expenses if there is an accident. Everyone knows that accidents can happen. A tornado could tear down your home or a fire could burn it down. In any of these scenarios, it is obvious that you cannot move back in the very next day. You have to wait for everything to be repaired. Because of this you will need to find somewhere else to stay. Renter’s insurance can cover a portion of your living expenses, most of the time, while you wait for the repairs to be finished. This type of policy is a safety net for these types of situations.
3. Replacement of Important Items
It’s no fun if you lose a suitcase while traveling and is extremely frustrating. Most airlines will only reimburse a customer up to a limited amount, which in most cases are far less than the lost items were worth. Fortunately, renter’s insurance may cover the remaining cost of the lost items, which makes these policies all the more valuable to renters who frequently travel. What happens if your car is broken into and a large quantity of personal property is stolen? Most auto insurance policies have a limited coverage for property stolen in the vehicle, but your homeowner’s insurance can pick up the slack. In fact, your homeowner’s policy can cover your personal property anywhere in the world.
Renter’s insurance may seem unnecessary until you are subject to an unfortunate event. Only then you realize you should have it. You’d be surprised to know that purchasing a policy is relatively inexpensive. The right renter’s insurance policy is a smart investment of your time and purchasing a good policy is a smart use of your money. Renter’s insurance can vary widely, be sure to check out PYB’s Renter’s Insurance page to see the full coverage details of our protection plan.