A great deal of renters believe that their belongings are covered under the landlord’s homeowners or building insurance policy when a disaster strikes. Sadly, that is not typically the case. The landlord’s insurance only covers damages to the building. It does not cover any damages or the ultimate destruction of your personal property. In addition, your landlord’s insurance does not cover any injury that may occur to a third party that is visiting you. The good news is that rental insurance, also known as renters insurance, does cover you under these unfortunate situations.

In essence, rental insurance is similar to homeowners insurance in the fact that it pays you for lost or damaged possession, and helps protect you from liability. So how does rental insurance work? If you happen to experience a covered loss in your rented space, the policy will help to cover the costs that are associated with the loss. The amount of coverage depends on two main factors such as the type of loss you have suffered, and the amount of insurance coverage that you have. In addition, there are two (2) types of rental insurance coverage options under the typical policy.

They are as follows….

Actual Cash Value reimburses you for the value of items at the time they were damaged or lost.

Replacement Cost Coverage covers the cost to replace any items that are lost or damaged.

A typical rental insurance policy covers the destruction or loss of property when a natural or man made disaster strikes such as a fire, lightning, windstorm, haul, a frozen plumbing system, theft, vandalism, or impact from a vehicle. It may also cover you if you are forced to leave your home on a temporary basis. For example, if your apartment become unlivable due to a fire, your policy will help cover the cost of alternate living arrangements until you can move back in. A typical rental insurance policy also protects you from a financial standpoint if a person is injured at your apartment and requires medical attention,

In essence, it will pay for their medical bills, and even cover financial damages if you are taken to court and lose. Depending on your specific rental insurance policy, you may even be covered for loss of belongings that are kept inside your automobile. That being stated, it does not include any systems or equipment that is installed within the automobile itself such as a car stereo.  There are a few things that are not covered under your rental insurance policy. For example, expensive valuable and collectibles such as jewelry may not be covered under a basic policy.

That means your costly jewelry may need additional coverage. Also, if you own and or operate a small business out of your rental unit it does not mean that the business is covered under your rental insurance policy. For example, if a computer that you use for your business is stolen it may not be covered under the standard policy. Please consult with your insurance agent.

If you rent an apartment, condo, or house, you need to have the proper rental insurance policy in place. Please consult with a professional insurance agent that specializes in providing rental insurance. It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.