What’s Typically Covered By Renters Insurance? Renters Insurance protects you and your family in many situations involving your residence and the things you own. The most common perils typically covered include: theft, fire and smoke, vandalism and water damage (but not flooding). Renters Insurance includes personal property coverage that can help you pay for losses that occur inside or outside your residence. There are typically two types of property coverage you can choose from: Actual Cash Value, which means that your belongings are covered for their replacement cost minus depreciation, reflecting the decrease in an item’s value due to its age, condition or other factors. Or you can choose Replacement Cost Coverage, which means that your belongings are covered for the amount it would take to replace them with a new item. Premiums are usually higher for this coverage. But you should know that some categories of personal property coverage usually have a maximum dollar limit by group (such as jewelry) or per single item (for example, a watch) that can be paid out to a policyholder in case of damage or loss.
You should also know that when you file a claim for a covered loss, you may be responsible for paying a set dollar amount toward the damages – called a deductible – to repair or replace whatever is damaged or stolen. Your renters insurance can also protect you in other ways: What if your residence is too damaged to live in after a covered loss, such as a fire? Additional Living Expenses coverage can help reimburse you for reasonable increases in living expenses, including payments for the cost of a hotel, food and other expenses you incur as a result of the covered loss.
Or what if there’s an accident within your residence where someone is injured? Family Liability Protection and Guest Medical Protection can help if you’re found legally responsible to pay for the injured person’s medical bills and lost wages. Have questions or want to add more protection to your renters insurance policy? Contact your local Allstate agent today. www.Allstate.com 1-866-621-6900 .