Just because you are not a homeowner doesn’t mean you can’t be protected.

Having insurance can protect the items in your home and most importantly the roof over your head.  If anything happens to the property you are living in and circumstances cause you to be displaced, renter’s insurance can help you with moving and relocation expenses.

Sometimes unexpected, unprepared circumstances occur, such as theft and or damage. With renter’s insurance, you’ll be prepared for the unexpected.

Here’s what’s covered!

Renters insurance has three levels of coverage that are very close to a homeowner’s insurance. They are the following:

  • Personal property
  • Liability
  • Living expenses

The personal property part of renter’s insurance can pay for the cost of repair or replacement of any possession. The liability will pay for repairs if you accidentally damage property. Yes, if your candle starts a fire, then the landlord can come after you for damages. It also covers if someone gets injured at your property and sues you for a remedy. The living expenses will pay for things like a hotel room, storage rental, and even food.

Within those policies, you must read the fine print. Some renter’s insurance will pay to replace an item while other coverage only pays the original market value. For instance, suppose you bought a flat screen TV five years ago for $1,000. Today, that same type of flat screen might go for $2,000. If you have replacement coverage, then that is what you’ll get. Market value will only pay the $1,000. This also means that replacement coverage can be more expensive.

What Isn’t Covered

Many renter’s insurance policies won’t cover damage that is caused by natural disasters. If your neighbor’s pipes burst and flood your apartment, then you’re covered. If a hurricane causes flooding to your unit, then you wouldn’t be covered. If you do live in a flood-prone area, then you could get additional coverage.

There are also caps on business equipment. That would impact anyone who works at home and might have expensive computers or keep inventory in stock like for an eBay business. You might also be limited with the amount of cash you can claim to be stolen. Most will only cover up to $500 that might be stolen.

Those are all the basics. You can get additional coverage, but it will mean your premiums will go up. As with any type of insurance, you should always do your research and shop around to find the best deal.