Though it isn’t required by law, renter’s insurance is important because it protects your property—furniture, clothes, gadgets—in case of damage or theft. It also covers temporary housing and liability protection or damages due to negligence. For example, if someone slips on the ice outside your door and necessitates immediate medical attention, your insurance will cover his or her checkups and medication. Should that person decide to sue you, your renter’s insurance policy has you covered.

So what exactly will your policy cover?

• Personal property
The majority of renter’s policies protect your belongings in case of disaster and other events that are out of your control. So if you live in a flood-prone community or near a fault line, it’s wise to get a policy to protect your property. It is important to note that some types of belongings can only be covered up to a certain limit set by the insurance company. So if you own expensive jewelry and other valuables, you should consider adding a personal articles policy to your existing renter’s insurance policy for extra coverage.

• Liability
Your insurance policy also covers the damages you need to settle for any bodily injury or property damage that are caused by mere negligence.

• Loss of use
This part of your policy covers your living expenses, such as food, hotel and other expenses, if you ever need to leave your home after it’s been damaged by an accident. The expenses you incurr while your house is being restored will be covered.

These are the basic components of a renter’s insurance policy. You can choose to add a few other types should you see the need for them. You can consider “medical payment to others” policy, credit card, bank forgery coverage, and “property of others” coverage.

Written by: Ilidio Cardoso

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