What Renters Insurance Covers And How To Save Money On The Cost

Whether you live in an apartment or a rented house, you need renters insurance. The coverage isn't too expensive and it protects your finances in a number of ways. Here's how renters insurance works.

The Insurance Covers Your Personal Items

Your landlord has insurance on the property too, so you don't have to worry about their property. Renters insurance is for your personal items and not the house. It covers your clothes, furniture, electronics, and other items even if they are not in your home.

For instance, if you have a phone or laptop stolen while you're out shopping, you can file an insurance claim for it as long as its value is more than your deductible for the insurance. Your insurance policy lists all the causes of loss it covers. This might include theft, fire, and storms, but may not include floods or earthquakes. You'll want to read and understand your policy before you buy it so you know what's covered.

Liability Coverage Is Included In Renters Insurance

Liability coverage is important to have in case someone gets hurt in your home or apartment. If your dog bites someone or your cat trips them and they break a bone, the person will need medical care. The expense could add up quickly, and you'll probably be the one that has to pay.

The liability portion of your insurance should cover the cost. However, when you have pets, you should always let the insurance company know because some breeds might not be included on your policy.

Temporary Living Expenses May Be Included

If you're forced out of your home due to storm damage or a burst pipe, your renters insurance might pay for your hotel bills and other expenses you have while living away from home. However, you'll want to know what kind of problems are covered. The insurance policy may not pay for hotel rooms if you're forced out due to a pest problem.

The Price Is Affected By A Few Factors

The cost of renters insurance is usually just a fraction of what homeowner's insurance would be. Still, you probably want the lowest price possible. The amount of the deductible you select could affect your payment, so you might want the insurance agent to tell you the price for different amounts of deductibles.

Whether you've filed insurance claims in the past might matter too, even those with a different carrier. You generally want to use insurance for expenses you can't afford yourself and avoid making small claims that you could easily pay.

The location of your apartment or home matters too since some areas get more violent storms or are in higher crime areas. You may want to add renters insurance to your car insurance to get a bundled rate. You might even try paying a year at a time instead of monthly if that could help save money on your premium.

For more information on renters insurance, contact an insurance provider near you.