Many people are curious how renter’s insurance works. Renter’s insurance reimburses individuals who lose their belongings due to theft, fire, or natural disasters. Future renters will want to ensure that they have limits that are high enough to cover the worth of all of their belongings. For example, if the items in your house are worth $30,000 then you would want to ensure that your insurance covers at least that much. Items that renter’s insurance will typically reimburse tenants for include clothing, electronics, furniture, decorations, toys, tools, etc.
Renters will also want to ensure that they have personal liability coverage. This covers renters in the event that someone is injured while on their property. If medical payment coverage is included on the policy, this will cover their medical expenses as well. Along with this, it is a good idea to have loss of use coverage. This type of coverage pays for renters to stay in a hotel if their property is damaged due to a claim and they must temporarily move out. Be sure to talk to an agent today about what rental coverages best suit your needs.