If you are renting your home or apartment, don’t think your landlord’s homeowners insurance covers your belongings. There is a monumental possibility that it doesn’t. Fortunately, there is a renters insurance product that will cover your losses in the event of certain disasters.
Bear in mind that renters insurance covers only the value of your belongings and not the actual building. With most policies, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Renters insurance 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 and your normal living expenses but still may set limits as to the amount they will pay.
Make an inventory of all your assets, especially valuables like jewelry, collections, art, etc. Video documentation is best along with a written list. Be sure to keep all warranties, receipts and any appraisals. This will help the claims process immensely. Next, make a note of any safety improvements, such as carbon monoxide detectors, fire extinguishers, sprinkler systems, etc. They can make a difference in your premium.
Sit down with your insurance professional and talk over what you have to lose and how you can purchase the protection you need to mitigate those potential losses.