Renters insurance, or tenant insurance, offers renters coverage similar to homeowners insurance. It protects your personal property against damage or loss, and insures you in case someone is injured while on your property. Tenant insurance does not cover the building, but may have a provision to cover tenant improvements.
There are some personal property limitations that exist in renters insurance policies. For example, some items that typically have a specific dollar limitation: money, securities, watercraft, trailers, jewelry, silverware, gold-ware, pewter-ware, and business property. Be sure to talk to your agent about items with specific limitations.
You may wish to consider replacement cost coverage. A standard policy covers the actual cash value of your contents (i.e. used value) at the time of loss. The replacement cost coverage will pay the actual cost to replace your property with a like kind and quality product. You must actually replace the product to get the replacement cost.
Some catastrophic losses such as earthquake and flood are not covered under a tenant policy. You may be able to purchase these coverages by adding an earthquake or flood endorsement to your insurance policy, or through the National Flood Insurance Program (NFIP).
Check your contract with the landlord. The landlord may require you to carry specific limits of insurance for specific coverages. The landlord also may want to be named as an additional insured on your tenant policy.
For more information on renters insurance in your state, you may wish to contact your state insurance regulator.
