What does renters insurance cover?
Except for insuring the structure of a home, renters insurance provides similar coverage to homeowners insurance. The following coverages are typically included in your average renters insurance policy:
Coverage C – Personal Property
This coverage can pay for losses caused by a named peril, or cause of loss, to your personal property. The covered causes of loss are listed in your policy and include fire, windstorm or hail, smoke, theft and more.
Coverage D – Loss of Use
This coverage can pay for the additional cost of living expenses if your apartment is unlivable due to a covered loss.
Coverage E – Liability
This coverage can pay for damage or injury to another person you’re liable for. It covers legal assistance against claims and can cover the cost of settling.
Coverage F – Medical Payments
This coverage can pay for minor medical bills for people who are accidentally hurt at your home, not including members of your household.
You can customize your renters insurance to provide coverage that fits your needs. Some renters insurance coverages that can be added are:
Personal property replacement
This coverage allows for your personal property to be covered on a replacement cost basis. Without this coverage, your personal property will be covered on an actual cash basis, which factors in depreciation.
For example, if you choose an actual cash value policy and experience a covered loss to your TV, you would be reimbursed the replacement cost minus its depreciation, which is based on the age and condition of the item at the time of loss. In comparison, a replacement cost policy would reimburse you the full cost to replace that TV with like kind and quality.
Scheduled personal property
This coverage allows for scheduled items to have expanded coverage that may otherwise have limits within the policy. Standard policies often have a dollar limit on some types of property, such as jewelry. If you have special types of property that are worth more, you may want to purchase a scheduled personal property endorsement to increase your coverage for these types of items. Also, in the event of a claim, your deductible would be waived for the items you schedule.
For example, your $5,000 engagement ring is stolen on your honeymoon. Under a standard homeowners policy, you’d be reimbursed up to the $1,500 jewelry limit for that ring. Scheduling that ring would allow you to expand coverage up to its scheduled limit.
Smart devices and computer coverage
This coverage allows for electronic devices to have expanded coverage that may otherwise have limits within the policy. As with jewelry, electronic devices have a limit of $1,500. Adding this endorsement would allow you to raise that limit from $1,500 to an amount you think is suitable for your needs.