The Truth About Renters Insurance

renters-insuranceRenters’ Insurance is an insurance policy which provides most of the benefits of homeowners’ insurance except it does not include coverage for the dwelling or structure. The owner of the building is responsible for insuring the building, but bears no responsibility for the tenant’s belongings.

Many rental properties include a requirement in their lease that tenants hold renters’ insurance (1) if the tenant damages the premises, (2) the landlord and other tenants can recover against the perpetrator’s insurance.  It is important to know what type of damage your Renters’ Policy covers. Basically, there are three types of coverage available:

  1. Loss of use, or Additional Living Expense
  2. Personal Property
  3. Liability

Additional Living Expense

Covers you and members of your immediate family living with you for living expenses over your usual expenses, when your home is uninhabitable because of a covered loss.

Personal Property

protection against loss caused by these perils:

  • Fire, smoke, explosion
  • Lightning, wind, hail
  • Riot, vandalism, civil commotion
  • Theft, burglary, robbery
  • Weight of snow, sleet, and ice, debris removal
  • Water damage from pluming and heating systems
  • Freezing of plumbing and heating systems
  • Bursting of heating or hot water systems

Personal Liability

Covers you and members of your immediate family living with you against lawsuits arising from bodily injury and property damage as well as the cost of legal defense. Watercraft liability for many boats is included at no additional premium.

Optional Coverage

Special personal property coverage adds coverage for additional risks of loss subject to certain exclusions.  Contact your Insurance Advisors Representative for  details on these and Scheduled Personal Property items.

Personal Property Replacement Cost

Provides “new for old” coverage.

Source:  Auto Owners Insurance Company