Understanding Renter's Insurance Plans Understanding Renter's Insurance Plans

Renter's insurance policies, like their name would suggest, are a type of insurance policy that are designed to provide financial protection to individuals who are currently renting a property. Often, tenants will not be covered by the landlord's homeowner's insurance policy, which can leave them on the hook financially in the event of a disaster. Understanding some of the financial risks that a renter's insurance policy protects against can help you decide if it is in your best interest to purchase a policy for yourself.

Natural Disasters

One of the most important things that a renter's insurance policy can protect you against is any sort of damage to your belongings that is caused by acts of nature like flooding, earthquakes, and tornadoes. Damage to the house and property itself will be covered by homeowner's insurance, but any sort of value lost due to water damage to your electronics and furniture will require a renter's insurance policy for coverage.

Theft

Renter's insurance policies will also protect you from replacement costs associated with a break-in or burglary. Beyond covering the replacement cost of your stolen items, theft protection will also usually cover the cost of cleaning up the damage to your property and any vandalism which may have occurred, as well as the replacement of the locks or the installation of new security features to reduce the risk of future thefts and damage occurring.

Relocation and Other Living Costs

Renter's insurance policies can also help provide funding to you in the event that some sort of natural event or other circumstance, like pest infestation or mold growth, forces you to move into a new location for a short while until your original property is made habitable again. Beyond paying for hotel costs, some policies will also offer coverage for food, laundry, and other expenses that you incur while you are out of your home.

Liability and Medical Cost Coverage

Some types of renter's insurance policies are also designed to protect you against financial repercussions that occur because of injuries that someone accidentally sustains while on your property and any medical costs that may arise because of those injuries. Keep in mind that this is only designed to cover costs that guests experience as a result of staying or visiting you: you and any other residents in the property are not covered.

For more information, contact a local insurance company like Bishop Insurance Agency.