What renters insurance covers
Rental insurance, also known as tenant insurance, protects you and your belongings against covered perils, which often include:
The coverage in many renters insurance policies breaks down into three categories — personal property, liability, and additional living expenses. Here’s a look at what’s covered with each protection.
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Personal property coverage is for your belongings or possessions. Your personal property is typically covered if it’s damaged or stolen inside or outside the rental property. Coverage includes any belongings, from computers and other electronics to jewelry, clothing, and more.
For example, if your phone or laptop is stolen while left unattended at a coffee shop or restaurant, renters insurance would provide funds to help you replace it. If the rental property catches fire or is damaged by a covered disaster, renters insurance would help repair or replace any damaged belongings.
Keeping an accurate inventory of your possessions, especially your valuables, can help streamline the process and ensure you don’t miss any important items when filing your insurance claim. Remember to keep receipts for any valuable items you purchase in case you need to file a claim later on.
The liability portion of renters insurance protects you from financial loss if another person is injured in your rental home. It also covers you if you damage another person’s personal property, whether it occurs at your rental property or elsewhere. For example, if you accidentally drop a friend’s camera at the park and it breaks, liability coverage will help pay to repair or replace it. If someone trips over furniture in your apartment and breaks their arm, liability coverage will help cover medical expenses for the injured person.
Additional living expenses
If you experience a covered loss that leaves the rental property uninhabitable, additional living expenses coverage helps reimburse some of the cost of temporary housing and living expenses during that time. Sometimes referred to as loss of use coverage, it may include the cost of a hotel or other accommodations, food, transportation, and other reasonable living expenses.
In addition, if your rental home suffers damage from a house fire, you could be without long-term, permanent housing. Rental insurance can help reimburse immediate expenses incurred for a hotel room, meals, and other pressing needs resulting from the fire.
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