Many renters overlook the need for renters insurance. They figure their landlord has insurance on the building, so that’s all they need. But what they may not realize is that the landlord’s policy doesn’t cover their personal belongings. For instance, what happens if there is a plumbing problem inside your apartment, which causes water damage to your computer, television, iPad, and furniture? Without renters insurance, you won’t have coverage for the damage or replacement of these personal things. Further, your landlord’s insurance policy won’t protect you if a guest visiting you is injured in your apartment and sues you for liability.
Renters Insurance Coverage
Your renter’s insurance policy will cover you from loss or damage due to covered perils, such as fire, smoke, lightening, accidental water damage, theft, and windstorm. Most renters insurance policies contain liability protection, which provides coverage for an injury sustained by another person while in your apartment. If injured in your property, your policy may include medical payments coverage for the medical expenses of the injured party. In most cases, legal defense costs are also covered by renters insurance.
Examples of renters insurance covered perils:
- A thief breaks into your apartment and steals many of your belongings.
- A guest slipped in your bathroom and sustained injuries.
- The apartment building burned down and your personal belongings are damaged.
A basic renters insurance policy will pay you the actual cash value of the item at the time of loss. This means if your computer is five years old, you’ll receive payment for a similar computer, but taking into account five years worth of depreciation. But, if you choose to add replacement cost coverage on your renters insurance policy, you coverage will include the cost to replace the computer without depreciation. Additional, certain items prone to theft, such as guns, collectibles, and jewelry may have limited coverage on a basic renter’s insurance policy. If you own items of this nature of significant value, it’s wise to add them to a separate insurance policy. Even if you think you don’t have enough property to insure, chances are, if you itemize what you have, you’ll find that you have more than you think. Even so, having liability coverage included in your renters insurance policy provides peace of mind.