Renters insurance protects your personal property in a flat, condominium or rented home against unexpected circumstances, such as theft, fire or sewer damage, and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property. Renter's policies often limit the amount they will pay for valuables such as jewellery, firearms and electronics. It is not uncommon for a landlord to require renters insurance, but fortunately, the best renters insurance companies make it easy to compare quotes online and take out a policy.
Yes, theft of your personal belongings is usually covered by renters insurance, even if you are not at home, with one important exception. Most renters insurance does not cover your roommate's belongings unless the two of you share a policy, which not all states or insurance companies allow. Renter's insurance usually covers legal representation in a lawsuit and money awarded to the other party. One of the advantages of renting is that it is the landlord's responsibility, not yours, to insure the building and make necessary repairs.
Your insurance company will probably ask you to have it professionally insured and to add specific coverage for the ring to your renter's policy (for an additional cost). The renter's policy covers your belongings in case of theft or destruction, and pays if you are responsible for damage to other people or their property. In the event that your flat or house is deemed uninhabitable due to covered smoke damage, for example, you would be required to pay out-of-pocket for any expenses that exceed your typical spending levels if you did not have renters insurance. Landlords can make renters insurance mandatory to limit the risk of being sued by tenants for personal property damage or liability costs.
Renters insurance is designed to help with damages caused by sudden and catastrophic events, such as a burst pipe flooding the bathroom, leaving mould in its wake. And your landlord's insurance policy won't pay for your living expenses while the building is being repaired either. While homeowners, earthquake and flood insurance can be expensive, renters insurance is comparatively inexpensive. There are a number of misconceptions about renters' insurance that can put renters off buying a policy.
Too many renters think they do not need liability protection because they rarely have guests or believe that the likelihood of someone being injured in their home is almost non-existent.