A young professional has just invested in a new laptop. The roof is leaking and water damages the new laptop inside her apartment. The landlord’s insurance policy does not cover a tenant’s personal property. Is the tenant out of luck? Not if she has renters insurance. Many tenants are not aware that a renter’s policy can cover loss or damage to just about everything in their apartments. Surprisingly, only 31% of people nationwide have renter’s insurance.
Renter’s insurance covers theft, loss or destruction of personal property due to fire, storms or other perils. Personal property includes clothing, electronics, Smart phones, computers, jewelry, and other personal items. If the apartment above has a toilet that runs over and drenches your clothes in the closet, your policy will pay for replacing those clothes.
Items of high value like furs, jewelry or expensive art may require an extra cost to your basic policy.
You are even covered for personal property not in your home. For example, if your laptop is damaged or stolen on an overnight trip, the loss will be covered.
If someone slips and falls inside your apartment, your policy can cover medical and legal costs in case you are sued. You are also covered if your dog bites someone inside your apartment.
Additional Living Expenses
In case your apartment is damaged so much that you cannot live there, the policy covers temporary living expenses. For example, if there is a fire that damages your apartment, the policy would cover the cost of staying in a hotel and eating out.
The cost of the typical renter’s policy is quite reasonable. Nationwide averages are as low as $15.00 per month. There may be a deductible meaning you must pay out of pocket first before the insurance company starts paying. For example, the roof leaks and drenches your mattress. The cost of a new mattress is $325. If your policy has a deductible of $200, you would be responsible for paying the first $200. The insurance company would then pay the $125 balance.