Few types of insurance policies are as misunderstood as renter’s insurance. Check out our answers to some of the most commonly asked questions about this type of policy.
What is renter’s insurance?
It is the rental equivalent of a homeowner’s policy. Should your belongings become damaged in a rental unit, it pays for them to be repaired or replaced. Renter’s insurance does not protect the structure, which differentiates it from a homeowner’s policy.
Who should have renter’s insurance?
Anyone who is renting and has items they cannot afford to repair or replace if everything is lost or damaged at once.
Is renter’s insurance mandatory?
Although not required by law, many landlords want it before they will allow a renter to sign a lease.
Is it best to share a policy with roommates?
Usually, no. The more items you need covered, the higher the coverage amount and the more you will pay. Plus, if a claim is filed, there could be disputes about dividing up the money.
Is renter’s insurance expensive?
Most policies are quite affordable. If you work with an insurance broker, it is easy to shop around for the best policy in terms of both coverage and price.
What terms do I need to know to understand a renter’s insurance policy
- Personal property damage coverage: coverage for replacing or repairing damaged or stolen items.
- Personal liability coverage: coverage for injuries within your rental unit.
- Medical payment coverage: coverage for medical expenses related to injuries in your rental unit.
- Loss of use coverage: coverage that pays for room and board if you must vacate your rental unit.
How are named perils different from all-risk?
With named perils policies, only the incidents listed will be covered. With an all-risk policy, things not specifically excluded are covered.
What items are generally not covered under a renter’s insurance policy?
Usually, the following items are not covered:
- Earthquake damage
- Flood damage
- Tornado damage
- Pest damage
- Terrorism damage
- War damage
Will renter’s insurance cover pets?
Some renter’s insurance policies will cover damage done by pets. As for injuries to your animals, it is best to have a pet insurance policy.
Does renter’s insurance cover items in storage?
Yes, if you are using a storage unit your policy will cover items in the rented unit.
Can I rely on my landlord’s policy alone?
No, the landlord’s policy is for their property—the space you live in. Your property is not covered, nor do you have liability coverage if your own actions lead to injury.
For assistance in finding the right insurance policy for your needs, contact an insurance broker.
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