What Does Rental Insurance Cover?

Renters insurance provides property and liability coverage.

When people purchase a home, unless they buy a home outright, they are required to purchase homeowners insurance. The bank requires this to protect their investment. Renters are not required to buy insurances, but there are many benefits for doing so.

Risks

Renters may think they have minimal risks since they do not own the property in which they live. However, other than concerns with the actual building, renters have many of the same risks as homeowners. Renters insurance protects renters from risks associated with their place of residence.

Contents

The primary purpose of renters insurance is insuring the contents of the home or apartment. Renters insurance covers damage to or theft of the contents of a rental home or apartment. Potential loss of personal items through natural disasters, such as floods or fire, and through natural mishaps, such as broken pipes, makes renters insurance a good idea.

Liabilities

Renters are liable for damages caused to the rental property that results from their own negligence. For instance, if water is left running and flows over onto the floor and damages the floor, walls or carpets, renters may have to pay to have the items repaired or replaced. Renters insurance covers the cost of such damages. It also provides coverage for injuries that take place on the property.

References

• Renters Insurance: What Does Renters Insurance Cover?
• Main Street: What Does it Cover?