Renters

Renters Insurance Policies

Renters Insurance Policies

Tunnell Insurance

If you rent an apartment or home, your landlord's insurance policy typically does not cover your personal possessions in the event of a fire, flood, theft, or other occurrence. Purchasing a renters insurance policy is a smart move to ensure that you will be able to replace your belongings if they are damaged or destroyed.

This type of insurance policy covers three main areas. The first, personal property, is the dollar amount it would cost to replace damaged, destroyed, or stolen belongings. You can purchase additional coverage beyond the standard amount for expensive electronics, jewelry, and other big ticket items. Some policies cover the actual cash value of your items (accounting for depreciation), while other policies cover the estimated cost to replace these items.

The second area is personal liability. This protects you against lawsuits if you are found responsible for an accident or injury in your home. Instead of being sued for damages, a renters insurance policy that covers liability would pay for the repairs, medical bills, or other expenses.

Finally, this type of insurance policy should cover additional living expenses in the event that your rental home becomes unlivable because of a fire, flood, or other occurrence; for example, the hotel stay while you look for a new home, or the deposit needed to find a new apartment.

This type of insurance coverage is typically very affordable (often around $100 a year for a comprehensive policy), so it makes sense to purchase a policy for your own safety and peace-of-mind. In addition, some landlords and property management companies require renters to have a personal insurance policy. Even if you think that you don't have very many belongings, the cost to replace clothes, furniture, and other essentials if something were to happen would be a large blow to your savings.