What Is Renters’ Insurance?

Renters often feel that the owner's insurance policy covers their property, which unfortunately is not the case. The owner's policy usually covers the building itself, but may not cover injuries sustained inside the structure or even personal effects. That's why renters insurance is so important.

Tenant insurance covers your personal property in a condo, apartment or house rented as a result of unforeseen circumstances such as fire, theft or sewer loss and actually pays for damaged property or lost. It can even protect you from liability for injury to your property.

Tenant insurance has a scope similar to that of home insurance, with the only exception that it does not offer coverage for the structure itself.

What does it cover?

Tenant Insurance provides coverage for the destruction or loss of personal effects in the event of a covered peril including: fire, vandalism, frozen plumbing system, hail, lightning, impact by vehicle, flight and storms.

The tenant insurance can also provide coverage if:

You are temporarily forced to leave your property: If your property becomes uninhabitable due to damage caused by a covered disaster such as vandalism or fire, renters insurance helps cover the cost of other livelihoods during repairs. ]

A person is injured in the property and needs medical attention: Personal liability coverage is to protect yourself and others who visit your property in case of an accident. It helps pay for legal fees and medical expenses you may incur.

Items stored in your vehicle are lost or damaged: Depending on your renter's insurance policy, you may be covered for personal belongings that you keep in your vehicle. However, the cover does not extend to the system or equipment installed in the vehicle.

What does not cover?

Now that you understand the basics of what tenant insurance covers, it is also important to understand what it does not cover in order to adequately prepare you. If you live in Hollywood or Macomb County here are some basic items that are not covered:

Home Business: If you operate a small business out of your home, that does not necessarily mean that the insurance policy your tenants will cover. You must check with your insurance provider if your insurance policy covers your home business and if you will need additional coverage.

Valuables: Valuables and expensive collectibles such as jewelery are not necessarily covered by your tenant's basic insurance policy and may require additional coverage.

Motor Vehicles: The ownership or use of a motor vehicle is not covered by the renters insurance policy, even if it is parked on your property. However, personal effects stored inside the vehicle are usually covered.

It is important to note that these are not the only things that are not covered by a renters insurance policy. So be sure to read your policy to better understand what is covered and what is not.

The bottom line

It is important to understand exactly what the renters insurance is so that you can decide if it is something you want. This has been a discussion of what tenants' insurance is, what it covers, and what it does not cover, so that you can make an informed decision. To learn more about this type of insurance, you should contact a reputable insurance provider today.


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