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Can I get insurance if I rent my home?
Renters insurance
provides financial protection against the loss or destruction of your
possessions when you rent a house or apartment. While your landlord may
be sympathetic to a burglary you have experienced or a fire caused by
your iron, destruction or loss of your possessions is not usually
covered by your landlord’s insurance. Because in most cases, renters
insurance covers only the value of your belongings, not the physical
building, the premium is relatively inexpensive.
By purchasing renters insurance, your possessions are covered against
losses from fire or smoke, lightning, vandalism, theft, explosion,
windstorm and water damage (not including floods). Like homeowners
insurance, renters insurance also covers your responsibility to other
people injured at your home or elsewhere by you, a family member or
your pet and pays legal defense costs if you are taken to court.
Renters insurance covers your additional living expenses if you are
unable to live in your apartment because of a fire or other covered
peril. Most policies will reimburse you the difference between your
additional living expenses and your normal living expenses but still
may set limits as to the amount they will pay.
There are two types of renters insurance policies you may purchase:
- Actual Cash Value – pays to
replace your possessions minus a deduction for depreciation up to the
limit of your policy
- Replacement Cost – pays the
actual cost of replacing your possessions (no deduction for
depreciation) up to the limit of your policy
With either policy, you may want to consider purchasing a floater. A
standard renters policy offers only limited coverage for items such as
jewelry, silver, furs, etc. If you own property that exceeds these
limits, it is recommended that you supplement your policy with a
floater. A floater is a separate policy that provides additional
insurance for your valuables and covers them for perils not included in
your policy such as accidental loss. |
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