Many people do not know the whys and potential reasons for renters’ insurance. Afterall, you are not the owner of the property and it should be their responsibility. Your personal belongings are not covered under that policy though your landlord’s policy protects the building you live in. Also, you need to protect yourself from getting sued by others. Basically, if they were to be damaged or lost to unforeseen incidents such as fires, storms, thefts, tree falls, and more, a renters insurance policy pays for the repair or replacement of all your possessions, subject to your coverage limits and deductible, though your landlord’s policy covers the building itself. Renters insurance, in the case of a liability or lawsuit also keeps you covered. Today, we at InsureWise would like to help you understand the basics of renters insurance.
Personal Property, Loss of Use, Medical Payments & Personal Liability Coverage
The policy for renters’ insurance is broken down into four sections of coverage.
Personal Property: Essentially, if it were to be damaged or stolen, your personal belongings is covered.
Loss of Use: If you were to be displaced by damages, renter’s insurance will provide temporary housing.
Medical Payments: To those injured on your property, renters policies cover payments
Personal Liability: If someone sues you from being injured on your property, renters’ covers you.
* You may be able to add personal injury coverage onto your policy in some cases. Protection against slander, libel, or defamation lawsuits is provided.
What Does Renters Insurance Cover?
You may assume renters’ insurance covers everything in your apartment and more, though it may not be the case. However, there are exclusions, limitations, and optional coverages you’ll want to know about. Below is the basic coverage.
Water Backups: Renters’ insurance will pay for the repair or replacement of your possessions if the pipes back up, leading to water damage in your home.
Storm Damage: Resulting from most types of storms, no matter if it’s lightning, hail, high winds, this insurance protects against damage to your possessions.
Theft: Renters’ insurance will pay for you to replace it if someone steals your stuff.
Fire Damage: You will be paid to replace it if a fire damages your possessions.
What is Not Covered Under Renters Insurance?
Earthquakes: Though you can usually add it as an optional coverage, earthquakes aren’t typically covered.
Floods: Damage from floods isn’t covered, while renters’ insurance covers some types of water damage. However, flood insurance can help protect you in this instance.
Some Dogs are High-Risk: If it were to bite someone, liability coverage is prohibited for some dog breeds considered “high risk.” A few breeds commonly considered high risk include presa canarios, akitas, doberman pinschers, pitbulls, rottweilers, chow chows, wolf hybrids, mastiffs, and German Shepherds.
Wear and Tear: Natural and gradual deterioration damage is not covered.
Lack of Maintenance Damage: If you had done something to prevent it, damage could have been avoided, and it won’t be covered by renters’ insurance.
Bodily Injury or Property Damage that was Intentional: Your insurance will not cover any lawsuits if you intentionally cause bodily injury or property damage. Anything beyond it is not covered as each section of your renters insurance policy has a limit to how much it will pay. You could get an umbrella insurance policy to extend your limits on your liability coverage, however.
Items Covered Under Your Landlord’s Policy
The building structures and property is covered with the landlord’s policy. Covered under your landlord’s policy, not yours, is anything included as part of those structures or property.