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A Renters insurance policy typically covers the policyholders personal property from loss of certain perils such as fire, lightning, hail, windstorm, explosion, vandalism, theft and riots, as well as other risks outlined in the policy form. Renters Insurance policies also add liability coverage any damage the insured policyholder or dependents might cause to another person. Generally most Renters policies include provisions for additional living expenses, or loss-of-use when a renter is forced to move during times when the dwelling is under repair.
When someone rents an apartment or private dwelling or purchases a condominium, Insurance for the renter and their personal property is needed. The landlord or condo association has insurance, but this insurance only covers the building and risks for the building or dwelling owner. A Renter’s belongings are not covered under the landlord of condo association insurance policies.
A Renters policy is typically written the same way a package homeowner policy is with coverage amounts, policy limits and exclusions well defined. Most Renters Policies insure for perils of:
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Aircraft
- Vehicles
- Smoke
- Vandalism or malicious mischief
- Theft
- Damage by glass or safety-glazing material that is part of a building
- Volcanic eruption
- Falling objects
- Weight of ice, snow, or sleet
- Water-related damage from home utilities
- Electrical surge damage.
Floods and earthquakes aren’t not included with Renters Insurance the same way these perils require a separate policy or as endorsement to be covered under a homeowner policy. In some regions, of the country renters need to buy a separate rider or add an endorsement to cover wind damage.
Renters Insurance policies are often packaged to include some if the features of packaged homeowner policies without insuring the building or dwelling. Renters may often choose between actual cash value for the insurance of their personal property or replacement cost value coverage. Renters need to make an inventory of their personal property and decide in the event of a loss how much insurance is needed. Keeping a detailed personal property inventory is also helpful in the event of a claim.
There are additional benefits for renters and condo owners with insurance policies for example, when waterbeds were common and popular renter’s with insurance policies had liability provision which would help pay for any damages the waterbed might cause. If the waterbed bursts and the water ends up in the apartment below and insured renter, the insurance would cover the damage.
Liability protection is standard with most renters and condo policies and means that if someone inside of the insured renters unit or dwelling slips and falls, coverage for any costs, up to the liability limit will be covered. If the person sues an insured renter, liability will cover what they win in a court judgment and the insured’s legal expenses, up to the policy’s limit.
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Related Blogs:
- The Standard Fire Insurance Form
- Household Inventory–Getting Started.
- Flood Disaster
- Earthquake Insurance
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