A Guide to Renters Insurance
Part 2 ,  What does Renters Insurance Actually Cover?

At its most basic, renter's insurance covers the contents of your rented dwelling. Typical called "named perils" covered include fire, theft, vandalism, plumbing and electrical malfunctions, certain weather-related damage and other named hazards. More specifically, a standard Renters policy is designed for renters to cover losses to personal property things such as:
  • Fire or lightning, Windstorm or hail, Explosion, Riot or civil commotion, Damage caused by aircraft. Damage caused by vehicles,
  • Smoke, Vandalism or malicious mischief. Theft,  Volcanic eruption, Falling objects, Weight of ice, snow or sleet,
  • Accidental discharge or overflow of water or steam from sources including household appliances, plumbing, heating, air conditioning or fire-protective sprinkler systems
  • Sudden and accidental cracking or breaking of steam or hot water heating systems, air conditioning, or fire-protective sprinkler systems
  • Freezing of plumbing, heating, air conditioning, fire-protective sprinkler systems or household appliances
  • Sudden and accidental damage from artificially generated electrical current

Another common policy component will cover loss of use, meaning that if your unit becomes uninhabitable due to one of these covered perils, you'll be provided with some money to pay for temporary housing (but this should be specifically listed in the policy; if not, coverage isn't provided). This is commonly call Loss of Use, Your renter's insurance may also cover the contents of your car and your luggage while traveling. This are items from your home you are carrying with you , that are normally left in the residence.

Most rental insurance policies have some liability coverage, so you will be protected up to a certain amount in the event that you get sued for an injury or other damages incurred at your home. It pays any court judgments as well as legal expenses, up to the policy limit.

Also important: the matter of pets. If you own a pet, you must declare it; chances are your premium will be higher as a result. Make sure your covered if your pet bites someone or destroys the home or apartment you live in. You are responsible for the destruction they cause just as if they were your own children.

What is not normally covered on a Renter's Insurance policy

You should be aware that there are many things that most policies do not automatically cover: backup of sewage into your residence, earthquakes, floods, and other "acts of God." These things can be covered for an additional premium if you feel you are at significant risk. Also, if you have any unusually expensive or valuable items like high-end electronic equipment, fine jewelry, musical instruments, or an important collection of art and antiques, you may need to purchase a rider or a separate policy to cover these items.

Renter's insurance policies also do not cover losses caused by the tenant's own negligence or intentional acts.




A Guide to Renters Insurance
Part 3 a How to Buy Renters insurance , Assess your needs
Posted 12:00 PM

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