Renters Insurance Gives Consumers Financial Protection

For individuals renting homes, apartments or condos, having renters insurance is protection against disaster.

While a landlord has insurance to cover the building’s structure, it will not cover your individual possessions, meaning renters insurance offers financial protection against the loss or destruction of your property. Given that renters insurance covers only the value of your possessions, not the physical premise, the premium is relatively cheap.

With renters’ insurance one’s possessions will be protected against losses from theft, fire, smoke, windstorm, water damage (excluding flooding) and more. Similar to homeowners’ coverage, renters’ insurance also covers one’s responsibility to guests who would be injured when visiting; paying legal costs should they be taken to court.

Renters’ insurance also covers one’s added living costs if they are unable to live in their apartment due to a fire or other covered peril. The majority of policies will reimburse individuals the difference between their added living expenses and their normal living costs but still might impose limits as to the amount they will pay.

The two different forms of renters’ insurance are actual cash value (pays to replace the possessions minus a subtraction for depreciation up to the limit of your policy) and replacement cost (pays the actual cost of replacing possessions with no deduction for depreciation up to the limit of your policy).

Given either policy, individuals may seek to consider acquiring a floater.

A standard renters’ policy offers only partial coverage for items like furs and jewelry. In the event you own property that tops those limits, it is best to supplement the policy with a floater. A floater is a separate policy providing added insurance for one’s valuables and covers them for perils not included in the policy like accidental loss.

Renting a property can be a great deal for those individuals not in a position to buy a home or condo.

Make sure, however, that you are properly covered so you do not rent trouble in the process.