Renters Insurance Coverage

The terms and conditions of each policy will vary but renters insurance policies typically offer the following coverages:

Personal Property Coverage

This provides coverage for your personal belongings, such as furniture, electronics and clothing, in the event of covered events such as fire, vandalism and certain types of water damage. It's important to note that there may be policy limits for certain high-value items, so additional riders or endorsements might be necessary depending on the renter’s particular needs and circumstances.

Liability Coverage

This providers coverage for third-party liability claims (i.e. causing bodily injury or property damage to a third party). Liability coverage typically includes legal fees, medical expenses, and repair costs. For example, if a guest slips and falls in your rental unit, liability coverage can help cover their medical expenses and any potential legal fees in the event of a lawsuit.

Additional Living Expenses (ALE)

ALE is also known as loss of use coverage and helps cover the cost of temporary housing and other living expenses if your rental home becomes uninhabitable due to a covered event. This can include hotel bills, restaurant meals, and other costs incurred while your rented home is being repaired or rebuilt.

Optional Coverages and Endorsements

Depending on your needs, you may be able to select coverage options or purchase additional coverages via endorsements for your circumstances. These can include:

Replacement Cost Coverage: Replacement cost value (RCV) refers to the amount it would take to repair or replace damaged property with materials of similar quality and functionality. Actual cost value (ACV), on the other hand, refers to the amount the insurance company will pay to repair or replace damaged property based on its actual cost at the time of the loss, taking into account such factors as depreciation.

Scheduled Personal Property: Typically available by endorsement or rider to an existing policy, this additional coverage may be useful if you have high-value items like jewelry, art, or collectibles.

Identity Theft Protection: This may be added to an existing policy by endorsement (for additional premium) to help cover expenses related to restoring your identity if it's stolen.