Renters insurance coverage is a worthwhile purchase. This coverage will protect your assets against natural disasters and accidents. You can have peace of mind and financial security. This invaluable guide explains the basics of renters insurance.

What to Know About Renters Insurance Coverage 

Why You Need Coverage

Renters insurance offers a safety net for you. It’s designed to help you financially recover from substantial loss.  The insurance covers some natural disasters, criminal acts, and your liabilities. While your landlord’s insurance policy will cover damage to the building’s common areas, it won’t include protection for your personal property. 

What the Insurance Covers 

A standard renters insurance policy typically includes a couple of aspects – personal property and liability.

First, personal property includes personal items that are damaged due to fire, hail, wind, lightning, or theft.  Personal property coverage also includes vandalism. You get monetary compensation for your items’ value.

Second, liability insurance covers your guests. For example, if your guest falls and injures themself inside your rented property, your insurance company pays the medical bills. 

How Policies Pay Out 

Decide to insure your belongings by cash value or replacement cost. If you file a claim, an actual cash value policy will cover your possessions’ worth, minus depreciation. A replacement cost coverage policy pays out the actual amount it will cost you to replace your items. Most policies reimburse you up to a certain limit, but you may choose to increase your protection if you have valuables that exceed these limits.

If you’re interested in exploring your renters insurance coverage options, turn to Northern Kentucky Home Insurance Company. Based in Alexandria, KY, they provide residents throughout Campbell, Boone, Kenton, Pendleton, Bracken, and Grant counties with high quality and cost-effective insurance solutions. Having served the local community since 1901, they understand the value of offering a personalized approach when customizing policies to meet each client’s specific needs. Call (859) 635-2500 or visit them online to request a free quote.