Homeowners insurance blog

What’s the Deal with Renters Insurance?

When it comes to insurance, most people think of home insurance or auto insurance. However, in reality, there are several dozen types of insurance policies. With everything from travel insurance to pet insurance, you can pretty much find coverage for anything – even your apartment. Insurance isn’t just for homeowners; those who are renting can get protection, too. Renters insurance, also known as an HO4 policy, is well worth the price tag.

Your landlord probably already has his or her own policy that covers your building. If the structure is damaged by a covered peril, such as wind, lightning or fire, your landlord’s insurer will help cover the repair costs. Unfortunately, damage to your belongings will not qualify for claim money. Your landlord’s policy only covers your dwelling and not the stuff inside.

If your furniture or other possessions are ruined in the mishap, you’re out of luck. It’s because of circumstances like these that carriers offer renters insurance. A renters policy will pick up where your landlord’s insurance left off: You’ll get coverage for your belongings, including clothes, electronics and furniture.

Your policy also comes with liability insurance. This kind of coverage will protect you if someone is hurt while on your property. For example, if someone trips over your Christmas tree or suffers an injury for which you’re held responsible, liability coverage will qualify you for help with legal costs and any damages you’re ordered to pay. How much help you’ll receive is dependent on your policy’s limits. Higher coverage limits will mean a more expensive premium, but you’ll know you’re covered if you experience a worst-case scenario.

There’s another problem you also could face. If your apartment or rental home is rendered uninhabitable because of the damage, you’ll be forced to find other accommodations while it’s being repaired – and you could still be responsible for rent.  But you can add loss of use coverage to your rental policy. That will help cover expenses such as hotel bills, restaurant charges and other living expenses while your place is being repaired. Be sure you understand the limits of this option, however.

Call a licensed agent today to learn more about renters insurance and the various types of coverage.