Renter’s insurance, otherwise known as tenants’ insurance, provides tenants with liability coverage, insurance for additional living expenses, and your belongings. They do not cover things like illegal break-ins or an injury to a visitor, but it’s useful for helping minimize the impact these situations can cause.
Personal Property Coverage helps to cover the cost of unexpectedly damaged or ruined property. This is useful in case of fire or theft, and might help you replace a television, computer, or other valuable items. This will cover almost anything up to the coverage limit you set.
Liability Coverage refers to accidents that result in damage to someone else’s property, or someone’s medical bills if you’re held responsible for the injuries.
Additional Living Expense Coverage applies to costs you incur such as hotel bills if you’re ever unable to live in your apartment for a period (think fumigation and natural disasters). This kind of insurance is useful but may not be relevant to you.
Not sure if it’s worthwhile for you?
Create a home inventory list to keep track of your most valuable property. This will help you compare insurance costs online.
*It’s important to know that while renter’s insurance is useful and can protect you in cases of emergency, this only covers you and your belongings – not the physical condition of the building. Your landlord has landlord insurance to provide liability protection, but those policy terms do not usually extend to tenants.*