What do I need to know about tenant insurance?

WHAT DOES RENTAL INSURANCE NORMALLY COVER?

Renters' insurance typically includes certain types of coverage, says Muldez:

Personal Property Protection, which helps protect your property in the event of a covered loss

Liability protection can protect you financially in the event that someone in your home is injured and files a lawsuit.

The increased cost of living, which helps cover the reasonable cost of staying after a recovered loss, makes your home uninhabitable

Medical coverage for clients that can help pay for the medical expenses of an injured person at home.

DON'T MY PROPERTY PROTECT MY OWNER'S INSURANCE POLICY?

“While your landlord may have an insurance policy to cover the building you live in, homeowner's insurance does not cover personal effects,” says Muldez.

And while some home insurance policies can help protect you against damage limited to tenants, in certain circumstances you could still be held liable for the damage - for example, if you caused a fire or a plumbing accident, note- he does. Tenant insurance generally protects your property and offers liability protection.

I DO NOT HAVE A LOT. WHY DO I NEED RENTAL INSURANCE?

You might think your possessions aren't worth much, but when you consider replacing all the electronics, clothing, furniture, and gadgets you own, the costs can add up quickly.

“Even a small fire or a break-in could cost you thousands of dollars when you need to replace your belongings,” Muldez says.

Rental insurance can help protect your belongings from the unexpected.

IS MY COMPUTER COVERED?

Your computer is one of your personal items. So if you have tenant insurance with personal property protection, that protection probably extends to your computer. But Muldez says there are a few things to keep in mind when trying to find out if your computer is protected:

Your insurance limits or the maximum amount your insurance company will pay after a covered loss. If your computer is worth more than your insurance limit, you may want to consider additional coverage.

Whether your policy offers replacement fees or actual cash value coverage to replace your computer. By covering the cost of the replacement, you can pay enough to buy a new computer of the same type. The actual cash value can help you repay the amount of cash that you can reasonably expect once you sell the item in its current age and condition.

WHAT IS PERSONAL LIABILITY INSURANCE?

Liability insurance can protect you if, for example, you are responsible for a visitor's medical expenses after they are injured at your home. Liability insurance is generally associated with tenant insurance, according to Muldez. However, be sure to check your specific coverage to see what protection it can offer.

A local representative can help answer your rental insurance questions so you can make informed decisions when purchasing a policy and select the coverage limits that are right for you.