If you rent your home from a landlord, one thing you should certainly consider investing in is renters insurance. However, unlike other kinds of insurance, many people may be unclear on what it is actually used for. To help, below is an explanation of what it is, what it covers and who may benefit most from using it.
What Is It?
Renters insurance is purchased by tenants who live in apartments, condos or any other property that is rented from a landlord. Many people may assume that such insurance does not have to be purchased because the landlord’s insurance policy will cover anything that may happen to a tenant’s living space and belongings. This is incorrect. Often, the landlord’s insurance will only cover the physical structure and none of the tenant’s belongings.
What Does It Cover?
For a relatively low cost, these kinds of insurance policies usually cover all the personal property of a tenant that may exist in an apartment or other rented living space. If this property is stolen or destroyed by a fire, flood or some other calamity, the insurance should kick in to pay for the damage.
In certain cases, the insurance policy may also supply liability coverage. For example, if a friend visits a person’s rented property and is somehow injured, the policy may be used to pay for that person’s medical expenses. It may even be used to pay for expenses resulting from a lawsuit from an injured visitor.
Who Does It Benefit Most?
This kind of insurance policy is best for individuals that use a rental property as their permanent residence. These people are likely to store all their valuable possessions in the rented property, and the loss of those belongings can be quite devastating.
This kind of insurance should also be purchased by people who live in rental properties in high risk areas. This is certainly the case for areas with high crime rates. Other areas may be at greater risk of natural disasters such as apartments within the food plane of a river or near a fault line.