When a person buys a home, they often purchase a homeowner’s insurance policy to protect their home and its contents. A renter does not own their place of residence, so they do not qualify for this type of insurance policy. However, renter’s insurance provides similar coverage to protect those that rent their home.
What is Renter’s Insurance?
Renters insurance is a type of policy that provides protection for those that rent their home. Although this coverage does not cover the dwelling itself, it does provide many of the protections of a homeowner’s policy. This type of insurance is often restricted to protections for the renter, their personal belongings, and liability.
Who is Renters Insurance For?
Renter’s insurance is protection for those who rent or lease their place of residency. The landlord should carry insurance to cover the home and their particular liabilities. However, this insurance does not usually cover the possessions of the person renting the dwelling, or any damages the renter may face. Renter’s insurance provides protection for the things the landlord’s coverage does not.
How Does Renter’s Insurance Work?
When a person rents a home, the landlord’s insurance policy provides coverage for the home in cases of fire, theft, or vandalism. Their policy will cover the costs of repairs from these incidents. However, the personal possessions of the renter are not covered. Renter’s insurance provides coverage for any items that are damaged or stolen in these types of incidents. Often, these policies will have a deductible. The renter will be required to cover this deductible first for each claim. Then, the insurance provider will cover the remaining cost of covered items.
Types of Coverage
Most policies cover personal property losses faced by the renter. This includes damages to the property due to fire, vandalism, or other covered events. It also provides coverage for theft of these items due to a break in. Typical renter’s insurance policies also provide liability coverage for the renter. This is coverage for any damage the renter may cause to the dwelling. For example, if a fire occurs in the home and it was caused by the renter, they may be liable for damages. This coverage will help protect the renter. Some policies also provide coverage for living expenses if the rented home is unlivable due to a fire or other event.
Benefits of This Coverage
There are many benefits to this coverage. It provides money to replace any furnishings or personal items destroyed or lost that would not be covered by the landlord’s insurance. It also helps with the financial burden a renter may face if a fire or damaging event was found to be caused by them. In addition, coverage for living expenses help ensure the renter has a place to stay in the event that the dwelling is damaged and unlivable.
Just as one would purchase homeowner’s insurance when buying a home, renters should purchase an insurance policy to protect them when renting. It is impossible to prevent every potential risk that may occur throughout life. However, one can purchase insurance to provide protection when one of these events occur.