Renter’s insurance is generally a good idea to have if you’re renting property. No matter what type of property you’re renting, whether an apartment, condo or rental house, having renter’s insurance is an inexpensive and excellent idea to protect you and your valuable possessions if the unthinkable happens.

Renters insurance covers the cost of replacing your personal property in the event of a major disaster, whether accidental or weather related. These occurrences include but are not limited to the following:

  • Fire
  • Lightning, wind or hail storms
  • An explosion
  • Damage from a riot
  • Damage caused by vehicles or aircraft
  • Smoke
  • Vandalism
  • Theft
  • Volcanoes
  • Falling objects
  • Weight of snow, ice or sleet
  • Accidental flooding caused by appliances, such as washing machines or dishwashers as well as the plumbing system
  • Water heater malfunction
  • Electrical damage caused by an accidental discharge of electricity

Types of Coverage
For renter’s insurance, you can decide how you want your belongings to be covered in your policy, as an actual cash value amount or a replacement cost value. Actual Cash Value (ACV) coverage only pays for what your possession was worth at the time that it was stolen or damaged, minus your deductible.

Replacement cost coverage, on the other hand, will pay for what it actually costs to replace what you lost, minus your deductible, regardless of how old it is. Replacement cost coverage is slightly more expensive when it comes to premiums, but it pays out more in case your belongings are damaged.

You can set coverage limits that are appropriate for your personal property. Taking an inventory of the valuables you own and calculating a total for all of them may help you decide how much coverage to purchase.

There is also liability coverage available for renter’s insurance policies that protect you in the case of accidental damage to someone else’s belongings or property. An example of this type of situation would be if your child through a ball through a neighbor’s window. Your liability coverage would pay for the cost of replacing the window in this case.”