Understanding Insurance Claims

2 Types Of Coverage You May Not Realize Your Renters Insurance Policy Offers

If you have recently signed a lease to rent a house or apartment, you may be in the process of getting everything set up before you move in. Depending on where you live, part of these preparations may include having to obtain renters insurance.

Even if you are not required by law to get renters insurance, it is a good idea to have coverage that protects your possessions from damage or theft. However, you may not realize that there are a couple of other types of coverage that the insurance policy can offer you in addition to covering damage to your belongings.

1. Liability Coverage Is Included in the Policy to Protect You If Someone Gets Hurt in Your Rental

One type of coverage that is usually standard when you obtain renters insurance is liability insurance. While you may be under the impression that the owner of the rental unit would be responsible if someone were to hurt themselves while on the property, you are actually the one who could be sued.

When you have an insurance policy that includes liability coverage, it will help to protect you if someone tries to sue you for personal injury. This means that you would not be responsible for the partial or full amount of damages if the lawsuit were to be won by the individual.

2. Displacement Coverage Covers Room and Board If Damage Forces You to Temporarily Leave the Rental Unit 

Another type of coverage you may not have realized is part of your insurance policy is coverage for displacement. If something were to happen while living in the rental house or apartment, such as a flood or serious electrical issues, you would have to temporarily leave until it was fixed by the owner.

To help with that process, the insurance policy's displacement coverage covers the costs of room and board while you are out of the rental. This helps to alleviate the financial burden of having to pay for a hotel room and meals while you are waiting to go home.

When you obtain an insurance policy for your home rental, it not only covers damages to your possessions, but it also protects you against liability if someone were to hurt themselves while visiting you. The policy also covers the costs of room and board if you were to be temporarily displaced because of a catastrophic event that leaves you unable to live in the unit for a few days. For more information about what types of coverage are included as well as optional add-ons, speak with an agent with a company that offers renters insurance policies.