Can I Get Insurance if I Rent?

If you are an apartment dweller, you can and should maintain renters insurance. The first reason is that it will provide coverage for your "stuff" like furniture and clothing. The second reason is that it will provide liability coverage in the event that you cause injury or damage to someone else.

A renter's insurance policy will first cover your things under a section titled "Personal Property". This coverage will have a limit that you determine. In order to figure out how high this limit should be, you should create a home inventory of all the things you own and add up the total value. This will give you a figure that you can use to determine the amount of coverage you should have.

There is also coverage for additional living expenses. This will pay the difference between your normal living expenses and additional expenses you may have to incur due to a loss. For example, if you had to live in a hotel while repairs were done in your apartment and the hotel cost 2 times the amount of your rent, this coverage would pay for the difference.

As for covered causes of loss, a typical renter's policy will have several "perils" that are covered. The policy will only pay if the damage is caused by one of these described perils. In addition to the perils, there are exclusions. Exclusions are conditions that either reduce or eliminate coverage for a loss.

You are also protected for liability claims with a renter's policy. The liability limit will cover for injuries you cause due to your negligence. It will also provide coverage for property damage that you cause by your negligence.

A renter's policy will not cover the building you live in. Since you do not have any ownership interest in the building, you cannot insure it.

If you own a business, your renter's policy may provide limited coverage for business personal property, but not for any liability claims associated with your business. If you own a business, you should maintain a business insurance policy.

Other exposures that are not covered by a renter's policy include intentional acts, punitive damages, and injuries to you if you are the policyholder, and claims involving motor vehicles.

If you have questions about your renters insurance, placing call to your agent or broker about your concerns will help greatly in your decision making process.

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