Types of damage and loss usually covered by renter’s insurance

Renter’s insurance is often totally overlooked as tenants make the totally wrong assumption that the home they rent will be insured by the landlord.  The actual coverage provided by renter’s insurance is surprising, covering the theft of your passport in Paris;  protecting your possessions from a leaky pipe at home; and the medical expenses of someone visiting your home who suffers an accident there.

Taking out a renter’s insurance policy is the sensible thing to do, as your landlord’s insurance will not cover your personal goods, just the property you rent. There are any number of scenarios which an insurance policy will cover, from fire and smoke damage, to vandalism and theft. If something major were to happen such as a fire, rendering your home uninhabitable until repairs are carried out, the insurance will cover the costs of you finding alternative accommodation.

Extra insurance coverage is given through a renter’s policy, to cover items which you take out of the property, such as a lap top or bike. These items could be just as subject to theft outside the property as within. Your possessions in general are covered outside the home, and the policy acts as travel insurance for your possessions when traveling, even oversees.

Renter’s policies even cover against things you may not have considered, such as damage from ice, falling objects, riots and explosions. Cover for something as simple as damage from an accidental pipe burst, or overflowing water from an air conditioning unit, will be of more use to you than cover against lightning, until the day lightning strikes. The cover will be there in the unlikely event that your possessions suffer damage from unexpected events such as a volcano or a car driving into your abode. Flood and earthquake risk are not generally covered.

Before signing a renter’s insurance policy you should take an inventory of your possessions which will generally include things like furniture, clothes, computers and sporting equipment. Some items may not be specifically covered, such as jewelry, but these can be added on as a special rider to the policy. Keep receipts and photographs of expensive or unique items.

A good policy should also cover essential items such as passports and other important documents. Theft cover is particularly important if you live in an area which has been targeted by burglars, or if you don’t have a good alarm system. You will need to choose between replacing your possessions at their actual value or their replacement value. Make an assessment of how much it would cost to replace them in the event of ruination.

Renter’s insurance also provides third party liability coverage. You are held liable if someone suffers injuries whilst under your roof. It will cover any necessary medical expenses they incur and protect you from any subsequent legal fees.

The cost of renter’s insurance is a small price to pay for the peace of mind the protection will give you. The types of cover it provides against damage and loss, both inside and outside your home, could prove invaluable if something happened which caused a claim to be made.