There are several types of insurance to suit several areas of our lives. One such type of insurance is Renters Insurance. This post will give you a clear overview of renters insurance and how it works.
What is Renters Insurance?
Renters Insurance is a form of home insurance. However, you buy the insurance not as the homeowner but as someone paying rent in this aspect. Hence, you may also refer to it as tenant insurance.
Renters Insurance is a contract between the insurer and insured to cover financial losses after mishaps in a rented apartment. Like other types of insurance, what it covers depends on the policy agreement.
Furthermore, not all companies offer renters insurance. Also, many companies have certain limitations in their policies.
What is Renters Insurance Policy?
A renters insurance policy is a set of coverages designed to protect tenants living in a house or flat. A standard renters insurance policy includes three types of coverage to help protect you, your property, and your living arrangements in a covered loss.
Types of Renters Insurance Coverage
There are three basic types of renters insurance coverages. They include:
- Liability Coverage: You are liable for repairs if you accidentally damage someone else’s property. Also, you are responsible if they find you to be at fault for a guest’s injury. In the former, it handles the repair, while in the latter, it handles the medical bills.
- Personal Property Coverage: The cost of repairing or replacing your possessions, including clothing, furniture, and gadgets, up to the limits of your policy.
- Extra Living Costs: If the rental property is damaged and rendered uninhabitable, additional costs, such as hotel fees, may be required.
You’ll almost probably have to pay a deductible before your renters insurance helps pay for a covered loss. The cost of your insurance coverage sometimes connects to the size of your deductible.