Know When to Submit a Renter’s Insurance Claim
If you’re a renter, don’t depend on your landlord’s insurance to cover damage to your personal property inside of your unit. Your landlord’s coverage insures only his or her structure and personal property. Since what’s inside of your rental unit is your own personal property, you must purchase your own individual renters insurance. Here’s what it covers:
Your personal property
Your renters insurance can help you repair or replace your personal property if it’s lost, damaged or destroyed by a covered risk. Those risks include but aren’t limited to:
- Explosion or fire
- Lightning, windstorms and hail
- Damage from vehicles not owned by you
- Burglary and vandalism
For particularly valuable items like artwork, musical instruments or jewelry, talk to your agent about special coverage. It’s available!
Your personal liability
If somebody gets hurt inside of your unit from your negligence, your renter’s liability coverage will pay damages up to the limits of your coverage. If you’re sued, your insurance will even retain and pay a law firm to defend you in court. Should you be at the home of somebody else and accidentally break or damage an item of personal property there, it’s likely that you’re still covered for your personal liability.
Medical payments coverage
Should your guest get hurt in your unit, this coverage can pay their medical expenses resulting from that injury. Those expenses are usually paid regardless of liability.
Additional living expenses
If your unit is severely damaged and rendered uninhabitable by a covered risk, additional living expenses coverage can help you pay for another temporary place to stay up to the amount of your coverage.
Maybe you live in an area where there are earthquakes or floods. You’ll likely want coverage. Without expressly written coverage, you’re probably uninsured for these events.
Actual cash value as opposed to replacement cost
Replacement cost equals the current market value of an item. Actual cash value considers depreciation. You’ll probably want replacement cost coverage so that your personal property is sufficiently insured.
Renters insurance is surprisingly inexpensive. Save receipts, document what’s in your unit with an inventory, and photograph everything in case you have to make a claim sometime in the future.