The answer really depends on your set of circumstances and how much protection you want. There are a wide variety of renter’s insurance options available to you, so you should make sure to thoroughly vet each one so that you can make a decision that is right for you. With that being said, let’s take a look at some of your options.
- Coverage for personal possessions: Here, your insurance covers any losses to your personal property caused by events like theft and fire. This type of renter’s insurance can either cover the actual loss of property, which takes depreciation of your possessions into account, or the replacement costs, which is the price to replace lost items with new ones. The latter type of coverage is more expensive. It’s also worth noting that this type of insurance usually doesn’t cover damage caused by flooding, as that is a different type of insurance.
- Liability insurance: This type of insurance protects you from claims when rental property is damaged or someone is injured while on your rental property. It can cover an individual’s medical expenses and even help offset legal costs when defending against liability claims.
- Additional living expense coverage: If your rental property is in need of repairs and you are forced to find other accommodations, then this type of insurance can help you pay for alternative living arrangements. It can even help pay for other expenses, too, like meals, during the time that your rental is repaired.
Renter’s insurance can be a great, relatively cheap way to protect your assets and your financial interests. But simply securing insurance isn’t the end of the road, especially if you need to file a claim. For various reasons, insurance claims are denied or paid out too slowly. So, if you have additional questions about renter’s insurance or how to best achieve a favorable outcome with your insurance claim, then consider speaking with an attorney who is knowledgeable in this area of the law.