Renters Liability Insurance
Renters liability insurance is doubly beneficial to any renters. It doesn't matter
whether the tenant is renting a house or apartment, as the insurance covers any rented property. This type of
provision covers the property of the renter and any damages tenants under the policy may cause to others. The
damages should be unintentional in nature. Malicious acts are never compensated.
The renters policy covers only the property of the renter. If the property causes damage to
the unit, such as an oven owned by the renter burning the place down, the policy would compensate the policyholder
if the landlord chose to sue. Most landlords have a homeowners policy that covers tenant damage to their units, but
this aspect of renters insurance is beneficial to have if they don't.
Renters Liability Insurance - Coverage
If a renter's property causes personal harm to another person or harms their
property, the policy should cover that. For example, if a guest is hurt while using an appliance named in the
renters policy, the company would likely compensate a fairly generous amount for personal damage or medical
A renters liability insurance policy usually covers damages resulting from theft,
fire and water. It is important to know that water damage is defined as damage that results from smaller amounts of
water. A leaky pipe that results in a sofa becoming damaged would be covered. However, severe floods that cause
standing water throughout the unit will not be covered. Flood, earthquake or tornado damages have provisions that
are usually included in a supplemental policy, which is called a "rider."
Renters Liability Insurance - Claims
When a renter sets up a policy, there is usually a total amount chosen. This is
the maximum amount the insurer will reimburse. It is important to be honest about dollar figures, as stating too
high of a figure will only be an unnecessary expense. Renters policies reimburse the policyholder based on a
depreciated amount, so a claim doesn't necessarily mean the insured amount is awarded.
People who buy a renters liability insurance policy will usually be compensated
in one of two ways - either the insurer will pay to have damaged items fixed or they will replace them. Which
decision is chosen depends on the one that is less expensive. The insurer calculates the current depreciated
amounts and decides which one is less of a loss for them. Prices of policies vary, but they are much less expensive
than homeowners insurance. Some companies also allow the policy to be combined with auto insurance.