What Does Renters Insurance Cover? Explained In Simple Words!
Many renters are interested if they need to have renters insurance and what covers the renters insurance
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The renters insurance does not only cover the personal belongings but it also has liability coverage. The liability coverage protects you from a financial loss that might occur if a visitor of your home is injured there.
Sometimes the visitor might decide to sue you, so in this case the renters insurance will cover the medical and legal expenses.
Many renters believe that the landlord's insurance will cover everything. To clarify this common confusion we will explain what landlords insurance covers.
This type of insurance is only limited to damages to the building and liability coverage for the common areas.
So, you will definitely need renters insurance if you want to protect your possessions from theft or damages and to protect yourself from financial loss in case that someone who is injured in your house decides to sue you.
Points of coverage of Renters insurance:
- Your belongings are protected in case of theft or any form of vandalism
- Your possessions will be covered in case of fire or other specifically named risks
- Your living expenses will be covered in case that your home became inhabitable in case of disaster
- You also get a protection of your possessions even if they are not in your home but in your car for example
It is important to point out that this policy covers only specifically named risks and excludes flood damages and earthquake damages. Both are considered separate risks and there are different policies designed for them if you want to protect your property in case of food or earthquake.
The good news is that you get a substantial protection at a small cost. You will easily be able to find a good renters insurance policy for 20 USD or less. Some renters might think that they do not own enough possessions to warrant getting insurance coverage, but if you take into consideration absolutely everything you own it might easily add up. Anyways, for such a small fee it is a must to have such a protection.