If you’re renting a house, condo or apartment, don’t overlook the need for purchasing renters insurance. Though your landlord has insurance on the building, it doesn’t cover the contents – your possessions and valuables – inside.
A renters insurance policy protects your personal property from loss or damage up to the limits you select due to perils such as smoke, fire, lightning, accidental water damage and theft.
Most renters policies extend liability coverage for an injury or property damage sustained by another person in your dwelling. Liability protection that also pays for legal costs and medical expenses is available up to various limits.
With your renters policy, you have options. You can choose to receive the Actual Cash Value (ACV) of your property at the time of your loss. Most basic policies offer ACV, which is the replacement cost, minus depreciation. Or you can add Replacement Cash Value (RCV) coverage, which allows you to replace the damaged item.
Additional considerations for your renters policy may include protection for items of significant value, such as any collectibles, jewelry, guns and the like. Since these are especially prone to left, a valuable articles policy may need to be purchased as they usually receive only limited protection under standard renters insurance coverage.