Those who rent an apartment, townhouse or a rental house have important insurance needs. The property you own is valuable to you and may have been accumulated little by little over a long period. The sudden loss of these personal items could place a significant financial burden on you if you had to replace it all at the same time.
This is why a renter’s insurance policy is so important. It can pay for damage to your belongings when they are lost or damaged.
What is covered?
Your personal property includes all of the property that you own inside your rental unit, including appliances, furnishings, clothing, electronics and even your food. A rental insurance policy will pay to repair or replace any of these items in the event of a covered loss.
Under a renter’s policy, you will find a wide selection of losses that are covered such as fire, lightning, windstorm, falling objects and many more.
A renter’s policy also provides coverage for liability claims that might be made against you. A liability claim arises when someone alleges an injury or that his or her property was damaged because you were negligent. With a renter’s policy that has liability coverage, your insurance company can pay an attorney to defend you in these cases, and the insurer can pay for any settlements that you may become responsible to pay.
How Much Coverage Do You Need?
Estimating the value of your personal items can be difficult but it is an effort that will be put to good use if you ever have a claim. One way to determine how much coverage you need is to examine your contents room by room and create a list of all the items in each room, estimating the cost to replace each item. When you add all of those figures together, you should have a good idea of how much coverage you need for your personal property.
The value of your liability insurance coverage is more difficult to determine, but it is always best to purchase as much liability coverage as you can reasonably afford.