Yet even as more and more people are renting their homes, many renters don’t have the same kinds of insurance protection as house owners. And that’s plain irrational—unless you also rent your possessions…
Now as a renter, you may not need to worry about the cost to rebuild your house, but you will need to think about things like:
Make sure you have enough insurance to replace all of your personal possessions in the event of a burglary, fire or other covered disaster. Then decide whether replacement cost (full amount) or actual cash value (depreciated) coverage is your best option. Either way, you should have a home inventory—a detailed list of your possessions and their estimated value—to help make filing an insurance claim faster and easier.
Whether you own or rent, you stand to lose a lot if a guest, delivery person or utility repair specialist is injured while in your home. Liability insurance will cover the cost of medical care for the person injured as well as your legal defense and any court awards—up to the amount specified in your policy documents. Something to consider is whether the amount of liability coverage provided by your policy is sufficient to protect your assets. If not, talk to your Insurance Professional about other options, including increasing your limits, or buying an Umbrella Liability Policy.
Additional living expenses coverage…
If your home is made uninhabitable due to a disaster or other covered event, renters insurance provides additional living expenses (ALE) to pay for hotel bills, temporary rentals, restaurant meals and other expenses you incur while your home is being repaired or rebuilt. Check your policy documents to see how much ALE coverage you’ve got, and if there are caps on benefit amounts or length of time benefits are provided.
Most renters polices include off-premises coverage, which means that your stuff is covered against the same hazards listed in your policy no matter where you go. Something else to consider if you travel a lot.
And, of course, how to get the biggest bang for your insurance buck.
Insurers often bundle discounts—say, if you already have a vehicle or business policy with them. Ask your Insurance Professional if you qualify for discounts for:
*A home security system
*A strong personal credit rating