Renters Insurance

bluehouse_420x315Can I get insurance if I rent my home?

Renters insurance will provide you financial protection against the loss or destruction of your possessions when you rent a house or apartment. The premiums are relatively inexpensive.

Purchasing renters insurance insures that your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods).  Similar to homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Renters insurance also covers additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.

There are two types of renters insurance policies you may purchase:

  • Actual Cash Value – pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
  • Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy

In order to make sure other items such as jewelry, silver, furs etc are covered, you may want to consider purchasing a floater policy.  A floater is an additional policy that provides insurance for your valuables and covers them for perils not included in your policy.