Renter’s insurance is very similar to a homeowner’s policy in that is a package of coverages. The biggest difference is that you don’t have structural coverage, because, well, you don’t own the structure. But, just like homeowners, it is Broad Coverage insurance that includes two sections. Section one covers property, which includes your personal property, or your “stuff”. Section two covers liability.
Personal Property Coverage
As mentioned above, Section 1 covers your belongings. The cool thing about this coverage is that your property is covered not only while in your home, but also while you are using it anywhere in the world. If you request it, this coverage can also include property owned by others while they are using it in your home.
Most insurance policies come packaged with some “extras” such as coverage for jewelry, silver, tree and shrub removal/replacement. But, keep in mind, these coverages can have all different types of limits and limitations. Make sure you read your policy if you have something that you would be upset over losing. For instance, if your policy states you have $1,500 worth of jewelry coverage be sure that they also don’t have a cap for any one item such as $500/per item. What that means is they will cover multiple pieces of jewelry lost under a covered peril up to $1,500 but not more than $500 per item lost. This is why it is important to understand your coverages. If you don’t know, ask your agent!
You face exposure to liability throughout your life. This coverage is included in any standard renter’s policy. In a nutshell, personal liability covers damages that you become legally obligated to pay because of bodily injury or property damage caused by an occurrence to which the coverage applies. The standard liability limit for any one occurrence is $100,000, but we recommend you carry a higher limit of up to $300,000 to ensure you are covered in the event of a catastrophic loss.
This is our favorite coverage! Most people have no idea what it is or if they have it. Everyone has it, and this is very important coverage to understand. This covers any injuries sustained NO MATTER WHO IS AT FAULT. The insurance company will pay up to the amount of coverage you have. We typically offer $5,000 in coverage but this can be increased or decreased based on your decision.