How Renters Insurance Protects Your Belongings

While landlords typically carry building insurance policies that cover tenants’ personal belongings in case of accidents or natural disasters, renters insurance serves as a safety net for tenants by offering protection of personal property as well as financial support in an emergency.

An HO4 renters policy (commonly referred to as an insurance policy for renters) offers four main forms of coverage for its beneficiaries: personal property, liability coverage, loss of use and medical/legal expenses. While the first two provide insurance against items lost or damaged due to covered perils, while medical/legal expenses coverage assists with temporary lodging expenses or legal fees in case an injury-causing accident takes place.

Most policies impose limitations on their reimbursement for high-value items like electronics, jewelry and fine art, making an accurate inventory essential. Consider adding an additional rider or floater to the policy in order to cover these valuables fully.

If a covered loss renders your rental unlivable, typically your policy can cover the costs of living elsewhere, such as in a hotel. Many also opt to purchase loss of use coverage to cover expenses associated with relocation such as food, laundry and hotel bills. Most standard renters insurance policies cover damage from fires, theft, vandalism and severe weather events but many exclude flood and earthquake coverage altogether; it might be wiser to purchase additional coverage specific to these events for optimal protection.