By Alice Yao | Updated June 23rd, 2020
If you are renting a home or an apartment unit, you will always be asked to show proof of Renters Insurance by your landlord or apartment manager.
The specific coverage on the policy that the landlords want to see is the Liability Coverage. By mandating their tenants to carry Liability Coverage, landlords are able to minimize risks in cases of accidents on their property.
As a renter, Liability Coverage in your Renters Insurance protects you in case you were found liable for any damages to the property or injuries to others.
In this article, we will go over these topics in your Renters insurance:
- Personal property coverage
- Additional Living Expense coverage
- Deductible (out-of-pocket expense)
Personal property coverage
A Renters Insurance policy also includes a number of other coverages beneficial specific to renters.
First, the Personal property coverage is included for you to cover all of your belongings, such as:
- Sports equipment
Depending on the type of Renters policy you purchase, this coverage could also protect your belongings outside of your home. For instance, extra furnitures stored at a storage unit or sunglasses in your car.
Important to note that most Renters Insurance place a coverage limit on valuables, such as jewelry, fine arts, golf clubs, collectibles etc. If there are expensive items in your possession, you should speak to your insurance agent about adding Personal Articles coverage.
Additional Living Expense coverage
Another essential coverage on your Renters policy is called Additional Living Expense, also commonly known as Loss of Use.
If your unit is not livable due to fire or other covered perils, Additional Living Expense coverage will take care of any extra costs from living in a hotel or another apartment unit.
This coverage also helps with any extra costs for meals at restaurants or getting takeouts due to limited access to a functioning kitchen.
If you have pets, this coverage will also reimburse you for increased expenses due to boarding costs of your pets.
There is a limit to this coverage and it is specified on your policy either with a capped dollar amount limit (e.g. $10,000) or a specified time period (e.g. 12 months).
Deductible (out-of-pocket expense)
Most Renters policies have a minimum policy deductible requirement that starts at $250 or $500. Your insurance company may offer the deductible as high as $2,000. Lower the deductible you choose, the higher the premium will be, and vice-versa.
Keep in mind that deductible is your out-of-pocket expense after a claim is filed and before the insurance company makes any claim payout to you. For example, if your payout is $3,000 and the deductible is $500, you will receive $2,500 as final payout amount.
We always recommend consulting your insurance agent before filing an official claim on your policy so you can make the most informed decision.
Renters policy is relatively inexpensive and provides lots of benefits for you in case of sudden major loss. Be sure to talk to your insurance agent and find out how you can be properly covered as a renter.
By Alice Yao |