What Is a Salvage Title?

 What is renters' insurance, and how does it work?

Renters' insurance is a type of insurance policy designed to protect tenants from financial losses due to theft, damage, or liability claims. It covers personal belongings, provides liability protection, and may include additional living expenses if you're temporarily displaced from your rental due to a covered event.

Advertisement

How Renters' Insurance Works

1. Personal Property Coverage

   • Protects your belongings (furniture, electronics, clothing, etc.) from damage or loss due to events like fire, theft, vandalism, or certain natural disasters.
   • Coverage is usually based on either actual cash value (ACV) (which factors in depreciation) or replacement cost value (RCV) (which reimburses the full cost of replacement without depreciation).

2. Liability Coverage

   • Covers legal expenses if someone is injured in your rental unit or if you accidentally damage someone else’s property.
   • Helps pay for medical bills, legal fees, and potential court-ordered damages.

3. Loss of Use (Additional Living Expenses)

   • If your rental becomes uninhabitable due to a covered event (e.g., fire), the policy helps cover temporary housing, food, and other necessary expenses.

How to Get Renters' Insurance

Advertisement

• Choose a coverage amount based on the value of your belongings.
• Select a deductible (the amount you pay out of pocket before insurance kicks in).
• Compare policies from different insurers to find the best coverage and price.
• Pay your premium, which is typically affordable (often around $15–$30 per month).

What Renters Insurance Doesn't Cover

• Damage from floods or earthquakes (separate policies may be needed).
• High-value items (jewelry, collectibles) may require additional coverage.
• Damage from negligence or intentional acts.

Advertisement