What should you look for in a good renter's insurance policy?

Question

What will be an ideal response?

Answer 1

First, if you are considered a dependent for tax purposes, check to see if you are covered under your parents' homeowner's insurance policy. Many policies cover a child's possessions if the child is in school and is a dependent of the parents. Otherwise, you need to purchase your own renter's insurance policy. Make sure there is enough to cover your personal property. Personal property includes furniture, clothing, electronics, computer, and other personal items, Renter's insurance should pay to replace all these items in the event of fire, theft, or other causes of loss. Without renter's insurance, you are responsible for replacing everything you own. Also, make sure your policy has adequate coverage for accidental damage and personal liability. Should you accidentally start a grease fire, your renter's insurance will cover the damages. If you have no insurance, the landlord's insurance may pay for the damage, but the landlord's insurance company would come after you because it was your fault. Legally, you could be held responsible for all costs associated with the accident. Just as important as property damage coverage is personal liability coverage. You are responsible for anyone sustaining an injury while in your home or apartment. This responsibility would include medical expenses and attorneys' costs. Renter's insurance provides protection for damages due to both accidents and instances where you are held liable. Finally, renter's insurance should reimburse you for additional living expenses due to any of the circumstances mentioned above. The smoke and water damage from that accidental grease fire could result in weeks of repair. During that time, where are you going to stay? A good renter's insurance policy should pay for your temporary housing, such as a hotel, for a couple of weeks.