A renters insurance policy covers your personal property, liability, medical expenses and additional living expenses.
Renters insurance covers your belongings, including:
If you want your renters policy to cover high-value items such as art or jewelry, they may have a lower coverage limit than other belongings. Talk to insurers about these items when choosing your coverage limits.
If you are responsible for someone being injured, including dog bites or property damage to others, personal liability can cover the related legal costs and medical bills.
Medical expenses coverage helps pay the medical bills of someone injured in your rental home, regardless of who’s at fault.
Additional living expenses
Also known as “loss of use,” or ALE, additional living expenses coverage pays the extra costs that arise if you need to relocate while your rental home is repaired. This normally includes hotel rentals, food and extra commute costs.
There are two types of renters insurance coverage — “named peril” and “open peril.” Named peril coverage insures against problems listed by name in your policy. Open peril coverage insures against all problems unless they’re listed as exclusions in the policy.
Some common covered perils:
- Smoke and fire damage
- Theft and vandalism
- Damage due to the weight of ice or snow
- Wind and hail
- Water damage
Open peril coverage can cost more than named peril, but can be worth it for the broader range of coverage.