Renter’s insurance is similar in so many ways with homeowner’s insurance.  The only major difference lies in the property damage benefit.  A renter or a tenant is merely renting the physical home or house space from the true owner of the physical structure or the building.  Therefore, the owner of the apartment complex, the home or the dorm is responsible for insuring the physical structure against damage.

Generally, renter’s insurance only covers the individual who owns the policy.  However, there are renter’s insurance policies that allow multiple policyholders and multiple tenants under one insurance cover.  There are also renter’s insurance plans that can be paid up front, or can be paid through insurance premiums paid out monthly, quarterly, semi-annually, or annually.  Most renter’s insurance policies are by necessity renewable.

Most renter’s insurance policies have a deductible.  As has already been mentioned in a previous section, the deductible is the maximum amount of money that the insurance policy holder has to pay himself before the insurance company takes over.  The lower the deductible amount is, the higher the renter’s insurance policy premiums are going to be and vice-versa.

The renter’s insurance generally covers only the tenant’s personal belongings and personal liability as well as the medical coverage of injured people.  There’s no property damage cover for the home structure.  The following section will go into the different benefits that a regular renter’s insurance policy entails:

Personal Property Damage

Coverage for the renter’s personal belongings is the major feature of a renter’s insurance.  Under this coverage, the renter has financial protection against damage due to disasters enumerated and expressly stated in his or her renter’s insurance policy.  Under the basic renter’s insurance policy, the renter is covered for damages to personal belongings due to fire, lightning, windstorm, smoke, and hail.  Moreover, the renter’s insurance policy covers the renter against losses due to theft, burglary and vandalism.

Personal belongings included under this type of insurance coverage are clothes, gadgets, appliances, sports equipments, and other personal property.  Similar to homeowner’s insurance personal property damage benefit, additional insurance may be purchased for valuable antiques, jewelry, and other expensive personal belongings.  There are also insurance plans that specifically protect the policyholder against damaged wedding and engagement gifts.

Some renter’s insurance policies offer more than just the abovementioned coverage.  There are policies that specifically include coverage for earthquakes, floods, falling objects, explosions, damaged water pipes, and other incidents.  There are also renter’s insurance plans that cover for loss of personal belongings while the policyholder is traveling.  However, renter’s insurance policies that have these added benefits usually have higher premiums.  In some cases, these insurance benefits are offered under a different policy altogether.

Personal property damage benefit may cover either replacement value, or actual cost value.  These concepts have already been discussed in detail in the home insurance section.  However, it is important to emphasize that most renter’s insurance plans usually offer benefits for actual cost value rather than replacement value.  This means that such a type of coverage value is for the depreciated value of the personal belongings.  However, there can be arrangements made for replacement cost benefit in exchange for more expensive premium payments.

Personal Liability

This type of benefit is usually included in renter’s policy though it is in no way assured.  In renter’s insurance policies where this is offered, the tenant or the renter is insured for a certain maximum limit and within the terms of the policy for lawsuits filed against him or her that arise from damage to another person’s body and property that is allegedly caused by the renter or occurs at the renter’s property.

No-Fault Medical Coverage

In some instances where no suit is filed but somebody visiting the apartment gets injured while within its premises, the injured party may submit his or her medical bills to the renter’s insurance company for restitution and financial compensation.  This medical coverage, however, usually has a limit and does not cover the medical bills of the renter and his or her room/housemates when they themselves are injured in the apartment premises.

Increase in Living Expenses

This is not universal to all available renter’s insurance plans.  In policies where it is offered, the insurance company will pay for the increment in living expenses that result from the necessity of living somewhere else if the property damages were grave enough to be credited.  This usually has a maximum limit.