You don't own the rental home you occupy. You only lease it from the property owner. Nevertheless, you do own possessions within the property. Your insurance coverage should thus address the items you possess, while not burdening you with coverage for items that are not yours. That's what renters insurance strives to do. However, it's up to you to determine the appropriate amount of coverage. How can you do so?
Renters Property Insurance
It's often better to refer to renters insurance's property coverage as possessions insurance. That's what it covers, after all your belongings.
You don't own the home. So, you won't need insurance for structural repairs within your possessions coverage. However, you will need to insure your personal belongings. After all, you'll move things like clothing, furniture and electronics into the home. The possessions element of your coverage will extend financial protection to your belongings. If an accident comes along and destroys those items, you'll want insurance to replace them.
Don't let the lack of structural coverage confuse you, though. Most renters insurance will include a type of property insurance for the home itself. This is called liability coverage. However, it won't apply to your personal losses. Instead, it will apply to the damage you cause to the property. Therefore, if a broken window or scorched carpet are your fault, you can pay the owner to have them repaired. It's often your responsibility, after all.
All the same, liability or possessions insurance won't cover random structural damage. For example, if an unpreventable house fire damages the structure, the homeowner's property insurance will likely cover the damage.
Determining Your Rental Property's Insurance Limits
You'll want to set up the appropriate renters insurance for your own property risks. Work with your Cloverleaf Insurance agent and landlord to navigate the process.
- Landlords frequently require renters to carry minimum levels of liability insurance. Always meet this minimum.
- For some people, the minimum liability coverage is fine. Others want more coverage. Take a close look at your current net worth. You do not want to sacrifice these funds paying for a liability claim. That can help guide you in choosing the right limits.
- Carefully calculate the value of your existing personal possessions. Items to include in the estimate include clothing, electronics and valuable possessions. Choose a possessions coverage limit to cover all these items. Keep in mind, you might need to add special riders for high-value items like jewelry.
Your renters insurance agent at Cloverleaf Insurance can help you determine the right type of renters coverage for you. Be upfront with your agent about the value of your personal property. With the right estimates, you won't have to worry about how an unexpected incident might impact you.