What is the Purpose of Renters Insurance?

Many renters mistake their personal properties being covered by their landlord’s insurance policy, but this isn’t the case. Landlord insurance only covers the property itself, but if you have renters insurance, then this policy will protect your personal belongings from unexpected circumstances like fire or theft, and you’ll be paid for a lost or damaged possession.

Renters Insurance vs. Homeowners Insurance

Renters insurance and homeowners insurance are actually quite similar. The only main difference is that renters insurance doesn’t cover the actual dwelling, unlike homeowners insurance.

With this in mind, and if you are a renter, here are a few reasons why a renters policy could be right for you.

It Covers Losses to Belongings

Renters insurance can provide coverage for loss of belongings. Regardless of how much personal property you think you have or think it’s worth, damage to your belongings or losing them completely can be very costly. That’s why having a policy in place to provide coverage for these things is very important. The regular HO-4 insurance policy, which was created for renters, will cover losses to personal property due to:

  • Water damage from household appliances
  • Theft or vandalism
  • Fire
  • Lightning
  • Hail
  • Ice, sleet, snow
  • And much more

Landlords May Require Renters Insurance

Some landlords will require that their tenants have renters insurance. A big reason for this is if you have your own coverage, this takes away some of the responsibility (or blame) from the landlord.

Additional Living Expenses May Be Covered

Sometimes, things happen that can cause your apartment or home to be unlivable. If this happens to you and your apartment or home is ruined by one of the events that a renters policy will cover, your renters policy will, fortunately, cover additional living expenses. This can include covering costs associated with living somewhere else temporarily. To better understand what your policy covers if this should happen, make sure you check with your policy.

To learn more about what renters insurance is good for and how you can choose the best plan, contact Remco Insurance today.