Best Renters Insurance of October 2022 – Forbes Advisor

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Here are the main types of coverage in a standard renter’s insurance policy.

Personal Property Coverage

This type of coverage covers your personal property – your furniture, jewelry, carpets, clothing, dishes, pots and pans, electronics and more. It covers damage resulting from problems such as theft, fire, smoke, vandalism, falling objects, explosions and the weight of snow and ice.

You will select a personal property policy limit, which is the maximum amount your insurance company will pay if your personal property is damaged or stolen. For example, you could choose coverage for $30,000.

You will usually have the choice between replacement cost coverage and actual cash value (ACV). Replacement cost coverage is more expensive, but provides better coverage because it does not take depreciation into account. For example, if you bought a laptop for $2,000 three years ago and it was stolen, the replacement cost would pay to replace the laptop at today’s retail price (less a deductible ). ACV would only pay the depreciated value of the laptop.

Some articles have “special limits” or sub-limits for certain types of losses. For example, a policy may limit coverage for stolen jewelry to $1,000. That would be insufficient for a ring worth $5,000, for example.

If you need more coverage for high-value items, you can “schedule” them to get paid what they’re worth if they’re stolen.

Liability insurance

Many people think of renters insurance only in terms of coverage for property such as furniture. But renters insurance also gives you important liability protection. Liability insurance comes into play when you are sued for injury or property damage to someone else. This coverage also covers your legal defence.

So if someone falls in your apartment or your dog bites someone and you’re sued, you can call on your tenant’s liability coverage.

A typical amount of liability coverage in a renters insurance policy is $100,000, but for the best renters insurance, you can increase this amount.

Medical payments to others

Coverage for medical payments is usually included in a renters insurance policy and pays small medical bills regardless of who was at fault. For example, if a guest slips into your home and suffers a small injury, it could pay regardless of fault. Coverage amounts are small and typically start at $1,000.

Additional living expenses

If you cannot live in your apartment due to a problem covered by the policy, coverage of additional living expenses can pay for hotel bills, restaurant meals, and other additional costs, such as pet boarding fees. Remember to keep all your receipts in order to make a claim.

This coverage is also referred to as “loss of use”.

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