It is true that renters insurance is like a lot of things in life: it can seem over-complicated at first, but with a little explanation it becomes more understandable. If you rent a property, obtaining insurance is a good idea whether you own a lot of valuable items or even if you do not. That's because insurance has the ability to cover you for damage caused by a fire that affects other people and their belongings. As with all types of insurance, each policy may have unique features and it is important to understand what is covered and what might be excluded.
What Is Typically Covered
In general, the primary purpose of renters insurance is to cover your contents in the case of a residential fire or other disaster. Your clothes, furniture, jewelry, paintings and books could all be rendered useless by fire damage, and insurance is designed to cover those losses. A policy that includes replacement costs will provide bigger compensation for losses, but it may also include a higher premium than a cash value policy. Other types of coverage could include the following:
- Liability coverage in case you negligently cause a fire
- Medical payment coverage to others (though this is usually limited)
- Loss of Use coverage in case you need a place to stay while the apartment is being fixed
- Fire restoration coverage by a qualified fire mitigation company
For the best insurance, it pays to check around. Get the coverage that is suited to your needs and fits your budget.
What Might Not Be Covered
In general, a fire is a fire, and with renters insurance you should be protected. If you own an item that has a high value, such as an expensive bicycle, you could need to specifically insure that item. It always is a good idea to talk at least once a year to your insurance agent to make sure your insurance is not out of date due to changes in your lifestyle.