What Is A Renters Insurance Policy?
A renters insurance policy is a bundle of different types of coverage that’s designed for people who rent their residence. It contains liability coverage, personal property coverage, medical payments to others coverage, and loss of use coverage. It also contains some other types of coverage that are designed for specific sets of circumstances.
What it does not contain is dwelling coverage. You don’t own the building, therefore you can’t insure the building. Makes perfect sense, right? You may note that your renters insurance policy says “homeowners.” That’s not an error, it’s intentional. The policy type is homeowners, because that’s the policy that it was born from. If you look at a homeowners and renters policy side by side, you’ll see that they’re very similar except for the lack of coverage on the dwelling and other structures.
What Is Liability Coverage?
Liability coverage is what your landlord is specifically asking you to buy. A renters insurance policy has other coverage, but this is the big one that will save your bacon. A renters insurance policy contains liability coverage for “third parties.” That means anyone who is not the insurance company or an insured under the policy. That coverage is there to protect you if someone thinks that you’re responsible for a loss they suffered.
Why would you be responsible for someone else’s loss? Because you caused it through your negligence. The most common example, unfortunately, is an accidental apartment fire. If you accidentally start a fire, it damages the apartment and you’re responsible for the cost of those damages, but that’s not all. Neighbors will also have damages and if someone has to go to the hospital as a result of the fire, you’re on the hook for a much greater amount of money, potentially.
Liability coverage on your renters insurance is what protects you when those people who suffered a loss because of your negligence come calling looking for money to make them whole. When you can’t undo the loss that you caused, compensation is the only thing that makes it right. If Americans are known for one thing, right or wrong, it’s for wanting monetary compensation for even the smallest perceived slight or wrong.
When their health insurance company is looking for reimbursement for the hospital stay resulting from your fire, when the people who lost everything want to be paid for their personal property, and when the owner of the building wants his deductible back, you’ll be glad you have renters insurance liability coverage. Not only does it protect you by paying those claims up to the policy limit, it also pays to defend you against those claims. That saves you the significant expense of a lawyer.
What Is Personal Property Coverage?
Personal property coverage is the part of your Binghamton Renters Insurance that protects your stuff. If someone else is responsible for a loss to the contents of your apartment because of their negligence, their liability coverage could pay you actual cash value, but let’s face it: You don’t want the actual cash value of your stuff. You want to have your property replaced with something at least as nice as what you had, right?
The neighbor’s liability coverage would pay you the actual cash value of your stuff, but that doesn’t buy you new property after the fire, or after a theft caused by the neighbor letting someone into the building who shouldn’t be there. That’s why you have your own renters insurance with personal property coverage and replacement cost on the personal property. With replacement cost, you’ll be able to go buy new property to replace what suffered the loss. That ensures that you’re put back to the same condition you were in before the loss occurred.
Your personal property coverage can follow you and the property, as well. If you’re traveling and something is stolen from your car, your policy can respond to that. It’s always a good idea to know what property you have, of course, and you can do that with a home inventory. That will be helpful if a claim arises, and it’s not difficult to do. Just make a list of all your stuff. You can also take pictures of each wall of each room and of the middle of the room and store them in the cloud. Anything to help the adjuster understand what you had and what you lost is a positive thing and will make a personal property claim easier.
Why Do I Need All That Coverage? What Is A Renters Insurance Policy Doing For Me?
Your renters insurance policy will protect your personal property. If you’re sued for causing a loss to someone else, you have coverage for the loss and for defense against the claim. You’ll have coverage for loss of use, if a covered loss prevents you from being able to stay in the residence premises.
Renters insurance will also help you stay in compliance with your lease. Just about all landlords require it, and with good reason. There’s no reason for them to absorb losses to the premises that are caused by residents, when the resident’s liability coverage can (and should) respond. They’ll expect you to have the coverage when you move in, and to keep it in force.
Fortunately, that coverage is easy to get. You can click above and be covered online in just one minute. If you have questions, just reach out by phone for expert answers. All you need to do is call (800)892-4308 or click to get covered - whether you need New York renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
What's Your Style?
- Do You Need Coverage ASAP? Check out the fastest way to buy renters insurance online and get covered in just 60 seconds!
- Do You Feel Like Talking About It? Just call Effective Coverage and a renters insurance expert can help you get great coverage in minutes.
- Do You Need Some Time Alone With Your Thoughts? We understand, which is why we created the New York Guide To Renters Insurance.
- Just Want To Watch A Movie Together? See our video guide below.
Photo Credit: walknboston Question The Answers CC BY 2.0