What Does Renter's Insurance Cover?
Renter's Insurance Cover
Renter's insurance come with many important types of coverage, and each of these has distinct limits and coverage when it comes to a fire. Make sure you understand those differences before fire damage happens, so you can be sure you have the right coverage.
- Personal Property
- Medical Payments for Others
- Loss of Use
Is the loss of your personal property covered by renter's insurance? Yes, fires are covered by your insurance as far as helping your recover your property. However, watch out for the replacement cost versus actual cash value distinction. If you've had a computer for several years, you'll need the "replacement value" terminology in your policy. Otherwise, you may end up with the actual cash value which won't be enough for you to replace the computer.
One of the top concerns for renters is the question of liability. If you've accidentally caused fire damage by leaving a lit candle while you're out or catching the oven on fire, it's good to know that liability coverage is available. Be careful not to list your landlord as additional insured. Instead, talk to an insurance representative. Do talk to a fire restoration professional in Highland Ranch, CO, about potential costs.
Medical Payments for Others
Sometimes insurance for renters covers medical payments for others. This may fall under the liability section of the policy. However, the coverage may be small. This is another situation you should discuss with the insurance provider.
Loss of Use
Another thing you should consider is loss of use. If the building is no longer inhabitable, you may be left with hotel costs and similar expenses. Fortunately, your insurance policy for renters probably covers this situation as well.
No Coverage Situations
There are circumstances that can lead to a loss of coverage. If you or someone else has purposefully caused the fire, you may be subject to a criminal acts exclusion. If this happens, you may be charged with fraud and could face expensive fine.
Renter's insurance covers fire damage in many ways. Make sure you understand what is at stake before fire breaks out in your home.