What does renters insurance cover?
If you’re a renter, you may think that if something unexpected happens you’ll be covered by your landlord’s insurance policy.
Unfortunately, this is a common misconception because your landlord’s insurance doesn’t cover you or your personal belongings.
Here are the 3 major protections you get from having renters insurance:
1. Coverage for your personal property
The average renter has about $20,000 of personal property, such as furniture, artwork, clothing, and housewares. If your belongings are damaged or destroyed due to a covered event, you’ll be reimbursed up to your policy limit.
You’ll be safe from common catastrophes and natural disasters, including burst pipes, fire, lightning and theft.
2. Personal liability
If you’re involved in a lawsuit, renters insurance will pay for your legal costs up to certain limits. This could happen if someone slips and falls in your apartment or if your dog bites a visitor.
3. Additional living expenses
If your rental home is damaged from a covered incident, you may not be able to live there while repairs are being made. Renters insurance will help reimburse your lodging and meal expenses until you can move back in.
But renters insurance doesn’t cover everything. For instance, it DOESN’T cover earthquakes, floods, or a home business.
The best part about renters insurance is that it’s inexpensive. The average annual cost nationwide is just $187.