If you are like many renters, you may feel that this insurance isn’t really necessary. However, if there is a fire in your apartment building or if a tornado rolls through and causes massive destruction, you risk losing all of your personal property.
If you add up the value of all your personal belongings, you may be surprised by how much they are worth. Renters insurance can cover everything from your clothing to your electronics to your cookware.
But renters insurance does more than just cover your property. Let’s look at what a policy can do for you:
Pay to repair or replace your belongings
- If your property is lost or damaged due to a covered event, your policy can help. Example: Someone breaks into your apartment and steals your laptop computer, television, and jewelry.
Pay for someone else's injuries or property damage when it's your fault
- This is called personal liability insurance and it can cover you, your children, and your pets. This coverage includes legal fees, court costs, and damages. Example: While playing tag football in the park, you accidentally cause someone to suffer a severe injury that requires surgery and physical therapy and they sue you.
Pay for temporary living expenses when your home is damaged
- If the home you are renting is rendered uninhabitable, your renters insurance can cover temporary housing and miscellaneous expenses until you can return home. Example: The building your apartment is in is severely damaged by fire, and you must stay in a hotel until fire and smoke remediation work can be completed.