Renters insurance is a must for most people who rent a condo, apartment, a home or another type of dwelling. Remember, your landlord's insurance only protects his or her investment in the building. It does not protect your valuables from risks. You'll appreciate having this type of policy should a fire occur or someone get injured within your space. Yet, not all policies and plans are the same. It's important for renters to choose a policy that offers the protections they need.
A key area to look when comparing policies has to do with exclusions. Exclusions list items or incidents that are not covered. They are always written into the plan. Some typical exclusions found in renters insurance policies may include the following:
- High-end jewelry: Your policy may not cover very valuable jewelry unless you have specifically listed it in the policy. Most of these policies only have a blanket level of coverage of $2,500 for any type of jewelry.
- High-end computers and electronics: Again, most policies have that $2,500 limit for electronics. It's easy to have more than that in value, though. If you own a lot of electronics of value, ensure that your policy specifically lists those items and their worth.
- Flooding: In some areas, renters insurance will not include flood coverage. It's important that you know what your specific coverage offers before you agree to the plan. Separate flood plans are available in most cases.
- Extensive liability: If you are sued because someone is accidently hurt in your dwelling, your renters insurance can pay for much of this. However, these an injury can exceed the coverage limit on your policy. You may need to purchase additional liability insurance is this is a concern of yours.
- Aggressive dogs: Some renters insurance plans will not cover specific breeds of dogs that are considered more aggressive. If you have a dog or plan to get one, ensure your pet isn't on the list.
Ultimately, you know what's valuable in your home. Talk to your insurance agent to find out if the coverage you have is enough to comprehensively cover all of your risks and all of your valuable belongings. If a standard policy doesn’t offer enough coverage, you can often add more coverage in the form of policy riders. It pays to be diligent and to ensure that all of your valuables are well protected.