Understanding Renters Insurance and Its Function

Renters insurance is a form of property insurance coverage. Such a policy typically covers a policyholder’s liabilities, unexpected damage to personal property, and even living expenses in the event of a covered loss. The policy covers losses to the tenant’s personal belongings while they are residing in the rented home.

The Basic Features of Renters Insurance Coverage

  • Coverage for Personal Property

Personal property insurance protects your belongings in your apartment, condo, or rental unit, such as clothing, kitchen equipment, furniture, etc. Renters insurance coverage will only apply in the event of a peril that is covered by the policy. Additionally, it also applies to things you keep in your car that aren’t directly connected to the vehicle.

  • Medical Payments and Personal Liability Coverage

Personal liability insurance protects you from the financial consequences of accidents caused by you. Medical payment insurance covers you for injuries that occur on your property, regardless of who is at fault.

  • Coverage for Additional Living Expenses

The term “additional living expenses” (ALE) is also known as “loss of use.” If your home is currently uninhabitable due to a covered claim, your ALE coverage will cover the cost of relocating you. If you’re staying for a shorter period, it might be enough to cover the cost of a hotel room. However, if your claim is significant enough, it will cover the cost of a temporary rental elsewhere. 

Other Events Generally Covered by Renters Insurance

  • Credit card and check forgery coverage– This protects you if someone forges a check or uses your credit or debit card without your permission.
  • Food spoilage– If there is a power failure or a mechanical problem that causes perishable food to spoil, you may be covered for the cost of the food.
  • Debris removal– If debris is removed due to a covered claim, your renters insurance policy may provide some coverage.
  • Building alterations/extensions– If you made improvements or additions to the building that were damaged as a result of a covered loss, you may be entitled to obtain reimbursement for what you paid for them.

What Renters Insurance Typically Doesn’t Cover?

The following are some incidents that are not covered by renters insurance:

  • Bed bugs or other pests
  • Floods
  • Sinkholes
  • Earthquakes
  • Theft or damage to your car
  • Theft or damage to your roommate’s belongings

How Should I File a Claim for Renters Insurance?

If you need to file a renters insurance claim, keep the following ideas in mind to guide you through the process:

  • Report the claim to your insurance agent as soon as possible.
  • Prevent further damage to your possessions. If you think you’ll require emergency repairs, talk to your agent.
  • Talk to your agent about your policy’s coverage and restrictions to see what applies to your situation.
  • Before beginning repair work, document damaged objects in writing and take photos or videos of the damage.

Contact our insurance experts at VGW Insurance today to learn more about your renters insurance coverage options!