Renters insurance is a type of homeowners policy designed to protect the belongings and personal property of someone who lives as a tenant and doesn’t own the property. These are HO-4 policies, and they cover personal property, liability, and additional living expenses.
Renters insurance covers the personal possessions a renter keeps in the dwelling. Its contents are covered for named perils, typically fire, theft, vandalism, smoke, plumbing and water damage, electrical malfunctions, hail and windstorms, explosions, falling objects, and more. If you live in an area with a high risk of floods or earthquakes, you will need additional coverage through an insurance rider.
Belongings that are valuable or expensive, such as fine jewelry, musical instruments, electronics, fine art, and antiques, may need additional coverage. You can purchase floater insurance for each item as a rider to your policy. Floater coverage will make sure that the full value of your goods is replaced after a covered event.
The liability coverage you get through renters insurance is personal coverage and pays for damages that you, your pets, or your family cause to others. It also covers damages and personal injury if someone gets hurt while in the rented home. Your coverage will help to pay legal expenses and settlements up to a set limit.
Additional living expenses are an essential element of homeowners insurance policies. If a covered event damages your rental unit and you can’t live there for a while, your renters insurance will pay for meals and housing until your unit is repaired and liveable again.
Your renters insurance will pay to repair or replace lost or damaged items. The amount they pay for each item depends on how they value your possessions per the terms of the policy. You can choose to get actual cash value coverage or replacement cost coverage.
Actual cash value coverage will pay for the value of an item at the time it was damaged or destroyed. This coverage is less expensive than replacement cost coverage but will give you a lower value in most cases due to depreciation. Replacement cost coverage pays the full cost of replacing your items with new ones.
Renters insurance is an investment to help you recover the cost of your possessions if they are lost or damaged. This coverage is affordable and is a good way to protect your items, with the bonus of personal liability coverage and pay for if your unit becomes unlivable for a reason covered by your policy. Purchase your renters insurance as soon as you move into a new rental for the most protection.
The agents at Hometown Financial Group can help you compare your coverage options and find the protection you need. Contact us today to book an appointment.
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