What Does Rental Insurance Cover and What Doesn’t It Cover

What Does Rental Insurance Cover and What Doesn’t It Cover?

There are different grades of rental insurance which you can choose, depending on how many valuables you have, what sort of cover you want and which company you go with.  Each of these policies will cover different things, although most of them cover the “usual”.

For most people renter’s insurance is the one of the cheapest insurances you can buy. Most typical renter’s insurance policies are around $10-25/month.

Basic Rental Insurance Cover

Rental insurance cover is generally in two parts, the first part covering your personal belongings from either theft or damage from fire, smoke, etc, and the second is an optional liability coverage which covers you for medical bills and, God forbid, legal action against you if anyone is injured during a visit to your home. Of course, you’ll probably think that it will never happen to you – but let me tell you this, that’s what they all say!

Your basic rental insurance should cover:

  • your personal possessions in the home from theft or vandalism
  • your personal possessions will be protected from damage in the home, from fire, smoke, windstorm etc
  • if your home is damaged which makes it uninhabitable, then some rental insurance policies will include temporary accommodation living expenses while repairs are being made to your home
  • your personal possessions should also be covered even when they are away from your home, for example in the car or while you are away on vacation

Now, you might be thinking that you haven’t got much – Ahhhh, but you’ll be surprised at how it all adds up. Think about the cost of replacing your CD or DVD collection for starters, your TV, clothing, shoes, jewelry, computer, furniture, electrical goods, bedding and on and on and on. It really does start to add up.

What Rental Insurance Doesn’t Cover

If you have any items of specific value (family heirlooms, priceless works of art etc) then you need to tell your insurance broker about them so that special cover can be included. You will also find that, although you are generally covered against your property being destroyed by fire, smoke, riots, hail, snow, ice, falling and tons of other stuff, there are some events which have been rather sneakily omitted – earthquakes, floods, nuclear war etc. Just make sure that you read the small print before you make your final decision and find out exactly what you will, and what you won’t get paid out for.

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