Most consumers who are renting an apartment, home or a condo, are not aware that their landlord’s insurance will not cover their property or liability exposure. The Renter’s Policy is necessary to cover the financial risk you take when renting a home or apartment. The Renter’s Policy is very similar to the Homeowner’s Policy except that coverage is not provided for the dwelling. It is considered a package policy because of the different coverages offered:
Personal Property Coverage
This coverage provides reimbursement for everything that belongs to you in an apartment, home, condo, or mobile home while renting. The coverage protects you from basically the same perils contained in a homeowner policy, such as fire, lightning, windstorm and burglary and theft subject to your deductible. It is important that you, the renter, determine the value of all your belongings when purchasing the policy and then adjust that value as it increases.
Personal Liability Coverage
While renting a residence, you are responsible for injuries caused to a 3rd party while in or on the property you are renting. In many cases, your landlord will require proof of liability insurance before allowing you to move in and require you to have them listed as an additional insured. Most companies will offer limits starting at $50,000 with an option to increase the limit for a small additional premium.
Additional Living Expenses
Additional Living Expense coverage is available to pay for expenses you incur while having to relocate temporarily due to a covered peril. For example, if you are renting a home and fire damage prevents you from staying in the home while under repair, your Additional Living Expense coverage will reimburse you for the cost of your temporary relocation until you can return to the home.
How Much Coverage do I Need?
Many consumers do not know or may be unsure of the value of their belongings. To obtain sufficient coverage, ask your agent or broker to help you determine the proper value of your belongings. There are free software programs available online that will also help you determine the value of your belongings and allow you to keep an inventory that may be needed as proof of loss for the insurance company.
