Understanding the Components of a Homesite Renters Insurance Policy

August 12, 2009

Our Renters Insurance Policy is designed specifically to provide the protection you need and the peace of mind you deserve as a renter. The coverage is relatively inexpensive, and a policy can be tailored to meet your individual situation.

Can I afford renters insurance?

The decision to purchase renters insurance is not really a question of whether or not you can afford it. When you consider the cost to replace all your property at once, or the potential liability of being sued by an injured person, or paying the medical expenses of that injured person, the question becomes quite simple: Can you afford NOT to purchase a renters insurance policy?

Who needs renters insurance?

Typically, anyone not covered by a homeowners insurance policy should have the protection afforded by a renters insurance policy. If you are unmarried and reside with a domestic partner or are a boarder in a residence where you pay rent, it is unlikely that you are covered under the homeowners insurance policy or another’s renter's policy for property or liability protection. Unless you reside with a parent or a close relative, you need to have your own renter's policy to provide adequate protection.

What is covered by a renters insurance policy?

A renters insurance policy provides coverage for your personal property, medical expenses coverage to pay medical expenses of someone who is injured on the premises, personal liability protection in case the injured person sues you, and loss of use coverage to pay your additional living expenses should you have to seek a temporary residence following a covered loss. Optional coverages are available and include the ability to schedule valuable items, get water back-up coverage, and make the choice of coverage and deductible amounts.

Personal Property

A Homesite renters insurance policy provides coverage for the replacement cost of your personal belongings, should they be damaged by a covered peril or stolen, up to the limits selected by you. You can select the amount of coverage you need to cover your property, from $15,000 up to $100,000.

Valuable Items

There is limited coverage for valuable items such as jewelry, fine arts, collectibles and guns on the standard renters policy. These items can be scheduled on the policy to be insured for their full value for an additional minimal premium.

Personal Liability Protection

The liability portion of a Homesite renters policy protects you, the renter, in the event someone is injured on the property as a result of your negligence, not the negligence of the property owner. For instance, your child leaves a skateboard on the sidewalk and a visitor trips and falls and suffers an injury. This injury would not be due to negligence of the property owner, but of you, and therefore you would be held legally liable if the person decided to seek compensation for injuries. The landlord would be responsible only if the injury was caused by something directly related to the property itself, such as a slip and fall on uneven pavement or because of a loose railing.

In addition to providing coverage when someone is injured on the premises through your negligence, it also provides protection for you if someone is injured unintentionally as a result of your negligence off the premises. What if while playing a game of golf, your ball goes astray and strikes a bystander or another player, causing injury? The liability portion of your renters policy would provide coverage in this case.

Medical Payments Coverage

If someone is injured on the property and seeks medical attention, this coverage pays for medical treatment, regardless of negligence. Your renters insurance policy would cover the medical expenses as a result of the injury, up to the limits of that coverage.

Loss of Use

If your apartment or rental unit is damaged by a covered loss and uninhabitable for a period of time while repairs are being made, this coverage pays the additional expenses incurred for your temporary residence, above your regular monthly rent and expenses. This coverage is a percentage of the amount of personal property coverage on your policy.

Learn the basics, so you can make the right decisions for protecting your property, financial well-being and peace of mind. Take a few minutes to get a free no obligation renters insurance quote, from Homesite and see just how affordable it can be.