A Renters Insurance Policy provides liability insurance and covers a tenant's personal property against named perils such as theft, vandalism and fire. Basically, it provides nearly all of the benefits of homeowners' insurance, with the exception of coverage for the structure or dwelling. However, it does cover minor changes that the tenant makes to the structure.
The policy is for those individuals who are living in a rented apartment or structure that want to reduce or eliminate risk of stolen personal property and liability for accidents. The landlord of an apartment or structure is responsible for insuring the property, but not the belongings of a tenant. The landlord is also not responsible for liability in the rental property due to accidents. Therefore, if an individual's possessions are stolen during a burglary or damaged by fire, the policy will permit the individual to recover the value of those possessions. In addition, if someone is injured as a result of an accident in a renter's home, the policy will assist in protecting the renter if there is a liability lawsuit.
The policy works by insuring all possessions for their total replacement cost. It will protect all personal property inside of the residence, such as jewelry, furniture, televisions, computers and clothing. Most major insurance companies offer this type of insurance, with different levels of coverage available. For example, for those items that are of particular value, a personal articles policy can be added for coverage. A renters insurance policy has many major benefits. If an individual calculates the value of their possessions, ranging from jewelry to electronics, it could easily add up to thousands of dollars. Damage or loss of this property as a result of certain elements (fire, wind, hail, etc.) is completely covered under the policy, so the individual can have total piece of mind. Another major benefit is that these policies are usually offered at a very reasonable cost. Therefore, for a relatively minor investment, individuals can protect their possessions against an unexpected event.