Even if you rent your property you still face many of the risks of loss and property damage similar to homeowners. Having a renter’s insurance policy is necessary to help protect against loss or damage to your possessions, and from lawsuits that arise from your actions. Your landlord’s insurance policy does not provide coverage for tenants. Your renter’s insurance policy is divided into three main sections and it is important to know why each component is important.
Having a renter’s insurance policy means that if you are found responsible for a loss or injury you will not have to pay out large amounts of money from your own pocket. You don’t own your property but you are still legally responsible for your actions that may cause damage to your building. You also need to keep your guests safe while they are visiting and you are further responsible for any actions of yourself or your guests that cause damage or injury.
The personal property coverage section protects your belongings. Imagine if due to a fire you had to replace all of your clothing, furniture, and other possessions. Buying new items can cost you several hundreds or thousands of dollars. Your renter’s insurance policy means gives you coverage against named perils. This means that if you suffer a loss due to a peril listed on your renter’s policy, you will be covered against that loss or damage.
The most common types of losses are due to fire or lightning, windstorm or hail, and explosion. You also need protection from burglary, theft, vandalism and other malicious and mischievous acts, and your policy will list several other perils. Amounts range from as low as $15,000 up to $100,000 depending on your needs. You can also buy additional amounts of coverage for items like your personal computer, business equipment, jewelry, bicycles, cameras and other expensive items. If you live in an earthquake zone you should consider buying this additional coverage protection.
The medical expenses section protects your guests when they visit you. Your renter’s insurance policy will provide coverage if someone suffers an injury while on your property. You are covered for up to $1,000 per person and save you from expensive medical treatment costs. You can also purchase additional amounts of coverage.
The liability exposures section is important because you are responsible for your actions and those of your guests. If you or your friends cause damage to the building or others, your policy will save your from thousands of dollars in expenses. This part of your renter’s policy protects you against certain risks, in amounts up to $100,000, for any action that results in bodily injury or property damage. Again you can purchase additional limits of liability coverage.
A renter’s insurance policy is a necessity for anyone who rents their property because your landlord’s policy does not cover you. For a free no obligation quote, click on renters insurance quote for your affordable coverage options.