Renters Insurance Explained

There are three main parts to a renters insurance policy:

1. Coverage for your Personal Possessions
2. Coverage for Additional Living Expenses
3. Coverage for Personal Liability Protection

Personal Possessions Coverage:

Renters insurance also covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses, while staying somewhere else, and your normal living expenses. Some insurance companies may set limits as to the maximum amount they will pay.

Additional Living Expense Coverage

If your home is made unliveable because of a peril that your policy covers, the additional living expense protection pays for hotel bills or temporary rentals, additional costs to eat in restaurants, and other costs you incurr because you are not able to live in your home.

Personal Liability Protection

Protection is provided against lawsuits for bodily injury to a person or for property damage to someone else's property that is caused by you or your pets. This coverage also pays the cost of defending you in court and any court awards up to the limits of your policy.