What is Renters Insurance and why should you have it

Whether you own your own home or rent, you deserve to protect those precious pieces of your life that remind you, when you walk in the door at the end of the day, that you are home. You may not understand, however, what the differences are between homeowner’s insurance and renter’s insurance. If you are a renter, you may not even be aware that your personal effects are not covered by your landlord’s insurance. Renter’s insurance can guarantee that should you ever find yourself a victim of burglary or damage, you will be able to replace your furnishings as well as personal items of value.

Whether you live in a condo, loft, or single family dwelling, you could become a victim of fire, flood, or theft. Even though you do not own the building that you are living in, you could also be held liable for medical bills and legal fees should a house guest or family member trip on the stairway in your residence. Renter’s insurance covers your personal effects and provides you peace of mind in knowing that if someone is injured in your home, you are financially protected.

You may have failed to see the necessity of carrying coverage on personal belongings and home furnishings in the past. However, if you add up the value of all your property you could be in for a big surprise. Clothing, furniture, electronic equipment, and even jewelry or artwork; it all adds up to a replacement value that you could not afford. It just makes good sense to protect your investment with renter’s insurance.

Most renters’ insurance policies provide you with three basic forms of protection:

1. Financial coverage for replacement of personal property in case of theft or damage.

2. Liability insurance to cover medical care and legal fees associated with injury to a guest who is in your home.

3. Coverage for out-of-pocket expenses associated with living away from home during repairs or major reconstruction due to peril.

Every renter’s insurance policy spells out the exact amount of coverage in dollar amounts and specifies what type of peril or damage is included. Although most policies cover common disasters such as fire, smoke, water damage from broken pipes, and theft, you should always check the provisions of your policy to familiarize yourself with your coverage.

Some basic policies exclude damages due to natural disasters like flood or earthquake. Additional coverage can sometimes be purchased for uncommon catastrophes. Policy addendums called riders can also be added, at additional cost, to offer greater coverage on large collections like jewelry, guns, or electronic equipment that exceed limits of the basic policy.

Whether you select a regular policy with preset limits or add additional coverage for jewelry and collectables, purchasing renter’s insurance will provide you the protection you need in time of peril. Perhaps the greatest irreplaceable loss associated with theft or damage, is your peace of mind. With renter’s insurance, that’s the one thing you need never lose.