Five Things You Might Not Know About Renters Insurance

Renters insurance has many benefits. It provides protection from personal property damage or liability for people who rent instead of own their homes. This article will look at five important things you should know before taking out a renters insurance policy.

1. Renters Insurance Can Cover Items Outside Your Home

Renters insurance covers the items inside the home you’re renting. One benefit of renters insurance is that it usually covers belongings when they are taken outside your home, too.

Luggage is a good example of this type of coverage. If your luggage is stolen while traveling, renters insurance may pay to replace your lost clothes and personal items. This great perk makes sure your belongings are covered inside and outside of your home.

2. Pets Can Be Covered Under Renters Insurance

For many of us, pets are part of the family But pets are your personal property as far as insurance companies are concerned. Because of this, renters insurance policies tend to cover pets like your other possessions. Therefore, the liability coverage of your renters insurance policy may extend to injuries caused by your pets.

Your insurance policy may help cover the cost of medical bills if your dog bites a guest in your home. Some breeds of dogs labeled “high risk” may not be covered under the policy, but most breeds are.

3. You Can Add Extra Coverage to Most Policies

The nice thing about renters insurance policies is that they are usually customizable. You can easily add more coverage on top of a basic plan. For example, expensive items such as technology, jewelry and artwork can be covered for an additional cost.

The monthly cost for a renters insurance policy depends on the amount of coverage and the replacement value of items being covered. Find out what’s covered in a basic plan and what items may be added for an additional fee when you compare providers.

4. Renters Insurance Doesn’t Cover Everything

Renters insurance covers a lot, but it doesn’t provide protection for every possibility. Damage from flooding, hurricanes, earthquakes, tornadoes, sinkholes, pests, terrorism and war is often excluded. You may be able to purchase additional coverage for these types of exclusions in some cases. Be sure to read the policy in detail so you fully understand what is covered and what isn’t.

5. Renters Insurance Often Covers Identity Theft

Thieves today don’t stick to breaking into your home to steal your jewelry and electronics.  They also steal personal information online like Social Security Numbers, bank account information, credit card numbers, and passwords. This is considered “identity theft” and it’s a growing problem.

Insurance companies recognize this issue and many renters insurance policies now include protection against identity theft. Some policies cover expenses incurred while trying to restore an identity or recover from the damage done by identity theft. Other policies may provide coverage for losses incurred when credit and debit cards are stolen.

The Bottom Line:

When it comes to insurance policies, knowledge is power. While “always read the fine print” may sound cliché, it really is important when you’re looking for a renters insurance plan. Understanding how the insurance policy works and what it covers will help you make an informed decision when choosing your policy.