For first-time renters or apartment-living experts, the conversation about renter’s insurance can be incredibly daunting. Besides understanding your basic options for renter’s insurance, you may also be wondering which of your belongings your renter’s insurance actually covers, and under which circumstances.
Every policy is different, so, if you have renter’s insurance currently, be sure to check with your provider for more details. However, the following is true for most policies and providers, and can give you a good idea of how renter’s insurance can protect you and your possessions.
Personal Property
One of the prime purposes of renter’s insurance is to protect your belongings in case of covered emergency events, like fires or theft. The specific events covered by your policy vary, but, most importantly, it’s essential to calculate the estimated value of your property inside your rental unit.
Many renters make the mistake of undervaluing their property to save money on their bills, only to find when they go to file a claim, they don’t have enough coverage to help cover everything they need. For a few dollars a month extra, it’s worth it to ensure all your belongings are protected.
Along with making sure your policy limits are high enough, be sure to check on the protocol surrounding repayment. Some policies will factor depreciation into the value of your belongings, while others will not.
Liability
If you’re familiar with auto insurance policies, you already know that liability coverage helps you cover costs associated with damage sustained to someone else’s property or health on, or because of, your property.
This could include something like a guest tripping down your stairs, or slipping on ice on your sidewalks in the winter. Just like personal property insurance, your provider will only cover bills up to your coverage limit, so make sure you consider how much you may be able to pay over the limits in the case of a very expensive accident.
Additional Living Expenses
In the case of some surprisingly common emergencies, the damage sustained by your property renders your space inhabitable, forcing you to live elsewhere. In these unfortunate circumstances, additional living expenses coverage can help you pay for hotels or other expenses incurred by this event. This coverage may even include additional food expenses caused by the temporary loss of your living space. This type of coverage can be a much-needed relief when you are already going through the stress of losing your property and living arrangement, and is offered by most providers.
The most important thing to remember about renter’s insurance? Your policy only covers what you paid for, so be sure to keep your policy limits high enough to cover all of your belongings. Have questions or interested in purchasing a policy for yourself? Contact SFM Insurance. We can help you with all of your insurance needs for both your home and your business.
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