Renters Insurance: What is it?

Renters Insurance: What is it?

There has been a growing shift in the housing industry that is moving away from typical homeownership as seen in the past several decades. The rise of apartment living has produced a new demand for insurance that is different than that of Homeowners policies. Enter Renters Insurance.

Renters insurance deals with covering your personal belongs within a rented space as well as events that would require repairs in the rented space. Rather than insuring a whole property like Homeowners insurance, Renters insurance take a much more focused approach by protecting your belongings and liability.

The typical Renters policy will cover three main areas:

  1. Personal Property: This covers all your personal belongings. This part of the policy has limitations so contact your agent to learn more about this coverage.
  2. Loss of Use: This coverage comes into play when a rented unit becomes uninhabitable, such as if a pipe breaks and causes extensive water damage or a fire in another unit requires evacuation from a premises. This must be a covered loss (earthquake and flood damage require separate policies to be covered).
  3. Liability: This covers events you are responsible for, such as if a friend is hurt inside your rented unit and requires medical attention.

The decrease of homeownership and the rise of owning expensive items in the millennial generation has sparked a need for Renters insurance that adequately covers the policy owner. This means each policy will look different from person to person. To learn more about this type of coverage, or if you have questions about your personal policy, please contact your agent at Hardy Insurance.