If you’re a renter, it’s important to know that landlord insurance coverage typically protects only the building. It’s up to renters to protect their personal property. Here are the basics on renters insurance:
Items covered – Includes clothing, furniture, televisions, kitchen items, computers and other technology tools. Depending on the policy, personal belongings may be protected no matter where they are used – for example, in your car.
Replacement cost coverage – Covers replacing possessions up to the amount of coverage purchased. The alternative, actual cash value coverage, pays only what the lost or damaged item was worth at the time the coverage was purchased.
Liability coverage – Often a standard part of a renters insurance policy, it helps protect renters if they, their families or even their pets cause harm to a person or damage someone else’s property.
Highly valuable items – Jewelry, art and even an expensive bicycle should be covered individually. This can be done through a rider, which is an addition to the policy that covers the item by itself.
Costs for renters insurance – Costs vary based on location, the type of building and other factors, so it’s best to talk with an experienced insurance provider about your specific needs.
To make the claims process easier, prepare a list of possessions, including photos. Keep receipts for significant purchases and record model names and serial numbers of electronic equipment. If there are roommates, each person should have their own renters’ insurance policies.