What It Is
Renters’ insurance is just like homeowners’ insurance, but since renters do not own the building, the insurance policy does not include coverage for damage to the building. It does cover the renter’s belongings inside of the apartment. If a renter makes alterations to the building, you are entitled to have these alterations insured as well.
Who Is it for?
Renters’ insurance is for people who live in an apartment building.
How It Works
Policies are written to cover the renter when the property is damaged under certain circumstances. These circumstances include the following:
Different Types of Coverage in Existence
Renters’ insurance includes liability coverage, property damage and living expenses. The liability coverage applies toward any damages that you or a family member cause to other people or their property. In the event that someone experiences an accident while on the property, the liability coverage will pay the injured party’s medical expenses. It will also pay for your defense attorney if the injured party sues you.
If your pets injure someone, renters’ insurance pays for those damages.
If the dwelling is uninhabitable because of a fire, for example, the policy will cover the renter’s bills for alternative accommodations. Your property may be damaged because of lightning, smoke, explosion, wind storm, water or other disasters. Unfortunately, these policies exclude damages due to flood and earthquakes. You would need to purchase supplemental coverage for these perils.
The major benefit of homeowners’ insurance is the protection it provides for your finances. If there is a fire, for example, all of your furniture, clothes and other belongings may be seriously damaged. If your landlord’s insurance does not cover your belongings, you would be entirely responsible for replacing all of your property yourself. This could be a huge sum of money to have to pay all at once. In addition to that, you would need money for food and alternate lodgings while repairs are being done. Renters’ insurance saves you from losing a great deal of money in the event of a disaster.