Renters Insurance Protects Your Other Possessions

Even if you don’t own your home, you need insurance for the other items you do own. Renters insurance covers your belongings from damage and theft and it also covers you from lawsuits and other expenses. Having renters insurance is just as important as homeowners insurance, yet fewer than 50 percent of those who rent either a home or an apartment have renters insurance, according to the Insurance Information Institute. Many renters assume their landlords’ policies will protect them; unfortunately, they won’t. Determine how much coverage you need, before you get a renters insurance quote.

Your landlord’s insurance covers his building and its infrastructure, not your possessions or your liabilities. What happens in your rented home is solely your responsibility. If you rent your home, make sure you get a renters insurance quote. Renters insurance policies usually include:

• Personal property protection: This covers the loss or damage of your personal belongings usually on and, in many cases, off of your premises. If you want to make sure your possessions are protected, even when they are not in your home, make sure you have off-premises coverage. Renters insurance will cover your belongings in your home against losses from fire, smoke, lightning, vandalism, theft, explosions and windstorms.
• Liability protection: This provides legal representation and protection against judgments for covered events. Like homeowners insurance, renters insurance covers your financial responsibility to other people injured at your home or elsewhere by you, one of your family members or your pet and pays legal defense costs, in the event you are taken to court. If you don’t have liability protection, your retirement accounts, investments and other assets could be at risk.
• Guest medical protection: This generally covers medical costs for visitors injured at your home that are not covered by liability protection.
• Reimbursed living expenses: This provides reimbursement for costs of temporary housing, if you are unable to reside in your rental property because of a fire, water damage or other event.

The best way to determine how much renters insurance coverage you need is to conduct a home inventory. Start by going from room to room and compiling a detailed list of all your personal possessions and their estimated value. Make note of items that may have appreciated in value since you acquired them. Having a record of your valuable items ensures that they are protected properly.

There are two types of renter’s insurance policies. One is an actual cash value policy, which pays policyholders to replace their possessions minus a deduction for depreciation. The other is a replacement cost policy. This type of policy usually costs at least 10 percent more because it pays policyholders the actual cost of replacing their possessions, up to the policy limit.

Like homeowners insurance, insurers take into account safety features and lifestyle when determining your premium. If you have a security system, smoke detectors, and sprinklers you will pay less. You will also pay less, if you don’t smoke.

Once you have determined the best coverage for your family’s needs, you’re ready to obtain a home insurance quote. Call agents in your local area, contact several insurance companies directly or use InsuranceQuotes.com to instantly get a competitive insurance quote from the nation’s leading insurance providers. Take the time to protect you and your family today.