If you don’t have a renters insurance policy, you could be in financial trouble if your personal belongings get damaged or stolen. This insurance offers a number of essential protections that will ensure you don’t run into financial issues. Here’s what you need to know if you’re a renter. 

FAQ About Renters Insurance 

What does renters insurance cover?

While similar to homeowners insurance, renters insurance does not cover your house or apartment. It will, however, cover your belongings and provide liability protection, which is crucial when facing litigation. For instance, if a person is injured at your home, liability coverage offers funds for medical payments and court costs, including lawyers fees. Some policies also cover temporary lodging if your home becomes uninhabitable.

Am I covered by my landlord’s insurance?

Your landlord’s home insurance covers the structure only. It does not cover any items kept in the home, including your personal belongings. Landlords compensate tenants for damage under some circumstances. For example, if they fail to ensure a habitable dwelling and your items are damaged as a result, you may have legal recourse when it comes to repairing or replacing your belongings. However, most damage will be the renter’s personal responsibility.  

How much insurance do I need?

This largely depends on the total value of your belongings. To get an estimated value, take an inventory of all your items. From there you can determine how high to set your insurance limits, as you might need a higher threshold to cover belongings that are worth more. 

What’s the difference between the actual cash value and replacement cost?

The actual cash value is the cost of the item minus depreciation, while the replacement cost is how much the item would be to replace at the current date. Replacement cost policies have higher premiums, but your damaged or stolen belongings will be replaced, saving you time and money.

If you’re looking for renters insurance, contact Imperial Agency in Bergen County, NJ. They will help you determine the value of your items and choose the best coverage limits for your needs. They are dedicated to helping their clients find reliable and affordable coverage. Visit the website to get a free quote or call (973) 546-9567 for more information.