What Does Renters Insurance Cover? Some Facts That Could Save You Grief

Apartment renters may think they do not need a renter's insurance policy; after all they may think they have relatively few possessions. However, this is only part of the coverage. So, what does renters insurance cover?

There are two basic types of coverage:
1. The first type is coverage of your personal possessions in your home against vandalism, theft or an insured damage, such as fire.
2. The second type is liability coverage, which protects you from the expenses associated with an accidental injury to a non-resident in your home.

Remember to ask your insurance agent about the precise coverages in any policy you may possibly consider so you know exactly what you are buying.

What The Landlord's Insurance Covers

A lot of renters incorrectly believe a landlord's building insurance will cover any small or large disaster or theft that takes place in their apartment building. Well, this is not true.

The landlord's insurance is designed to protect the landlord against damage to the public areas of the building and for general liability coverage for these same areas. Your furniture and personal possessions are not covered under a landlord's insurance policy, or damage you might do to the landlords building. Your possessions and the well-being of your apartment are your responsibility. By renting, you also assume responsible for liability within your rented home.

That is why renters insurance is important; you need to protect your possessions and protect your liability inside your home.

Some Points Of Coverage

What does renters insurance cover?

Coverage for theft and vandalism to your possessions
Coverage for damage to your possessions*
Coverage for relocation expenses while repairs are made to your apartment after damage from an insured risk
Coverage for theft and damage to your possessions away from your home, such as items in your car or taken with you while on vacation
Coverage for liability claims

* These are referred to as "insured risks" and are explicitly mentioned in your policy. These include fire and many other standard risks. Some risks are not standard and will require a separate policy, such as flood insurance, earthquake insurance, and electrical discharge damage.

Renters Insurance provides good coverage at low cost. You can locate a good basic renter's insurance policy for about $20-a-month or less.

Final Thoughts

Many people manage to ignore getting renter's insurance, even though it could prove to be one of the most crucial forms of insurance you carry. In a disaster, a renter's policy can save your assets from huge expenses including future earning. Insuring your possessions is only part of it. Liability coverage is nothing short of a safety net, a godsend, when it is needed. Liability coverage alone is more than worth the fee of a standard policy.

By: Jennifer Edwards

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Jennifer Edwards specializes in personal finance consulting. For more information and more coverage details including quotes, go to What Does Renters Insurance Cover?, that is located on Jennifer's website at www.RentersInsuranceQuotes.org.