Renters' Insurance
Suppose you came home to find your house or apartment has been broken into or there was a fire. You can’t assume your landlord will pay for the damage. With renters insurance, you’ll be able to replace what is damaged or stolen.
Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage from plumbing. If you’re forced out of your home because of a disaster, your additional living expenses will be covered.
Renters insurance pays the reasonable additional costs of temporarily living away from your house or apartment if you can’t live in it due to a fire, severe storm or other insured disaster. It covers hotel bills, temporary rentals, restaurant meals and other living expenses incurred while your home is being rebuilt. Coverage for additional living expenses differs from company to company.
Renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet, and pays legal defense costs if you are taken to court.
How to Buy Renters' Insurance?
Renters insurance is a form of homeowners insurance and the same rules apply when you shop for it. Ask your friends, check the Yellow Pages or call your state insurance department. The National Association of Insurance Commissioners (naic.org) has information to help you choose an insurer in your state. Also check consumer guides, insurance agents, insurance companies, and online insurance quote services. Talk to a number of insurers to get a feeling of the type of service they give. Check the financial stability of the companies you are considering with rating companies such as A.M. Best (ambest.com) and Standard & Poor’s (standardandpoors.com/ratings), and consult consumer magazines.