What Does Renters Insurance Cover?

Just like how a bank makes you pay homeowners insurance to protect their investment, a renter will have the option to buy renters insurance in order to protect themselves and their belongings. But exactly what does renters insurance cover?

When asking yourself the question ‘what does renters insurance cover?’, you need to understand that renters insurance is broken down into two categories: Contents and liabilities. When you decide to purchase renters insurance, even the most simple insurance will cover your belongings. Many people are unfortunate enough to lose everything they own as a result of a natural disaster, but with renters insurance, your contents are covered. Almost everybody will be unfortunate enough to damage or break one of their belongings in their lifetime, and although the landlord is responsible for a lot of the contents of your house, there are some personal things which are not in the list of the landlord’s responsibilities, but with renters insurance, those things are covered.

A lot of people are unsure about purchasing renters insurance because they think it costs too much, but if you think about all the things it covers, it is more than worth it. Imagine having a pipe bust in your house, destroying the whole first floor of your house including the kitchen appliances, all the flooring and most of your furniture. If you did not have renters insurance, the cost of the damage will be tremendous, and will most likely cost more than 10 times your monthly bill if you were to purchase renters insurance. It is when you put thoughts like this into perspective that you realise that the small monthly investment is definitely worth it.

If you do decide to take out renters insurance, and stick with the basic coverage, you are only covered for things which break as a result of a natural disaster or from someone else’s negligence. To be covered for the damages made as a result of your own negligence, then you must take out a more comprehensive type of renters insurance. This type of insurance will obviously cost more, but if you take into account the amount of possessions you break as a result of your negligence, then it is definitely worth it.

No longer will you ask yourself the question ‘what does renters insurance cover?’, as hopefully we have explained briefly what the types of insurance cover. It is now time for you to decide which type of coverage will better suit you, but in regards to actually making the investment, you definitely should.

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