Renters insurance protects tenants from losing their personal belongings due to a covered event, like a fire. In exchange for a small, monthly premium, you receive various types of financial protection that can aid you if something unfortunate should happen. If you're a first-time renter, use the following guide to ensure you have the knowledge necessary to pick the right policy for your needs.

What Does Renters Insurance Cover?

The three most common types of coverage you get from a renters policy include personal property, liability, and additional living expenses. The first pays to repair or replace personal property damaged or destroyed in a covered peril. Liability coverage pays for medical costs or repairs if you or a member of the household injures someone else or damages their property. It also offers financial protection if something unfortunate should happen to a guest while they are on your premises. 

It can be stressful if your apartment or rental house becomes uninhabitable due to storm damage or a fire. The additional living expenses portion of a policy provides funds for everyday necessities, like hotel fees, restaurant tabs, and laundry expenses, while your property is being repaired or renovated.

What Perils Does It Guard Against?

Covered perils vary by policy and provider, but most protect against losses stemming from vandalism, theft, fires, windstorms, and falling objects—including hail and tree branches. On the other hand, most carriers exclude damages caused by floodwaters, earthquakes, and mudslides. If you live in a region that frequently experiences these natural disasters, you can buy separate coverage for these events at an additional cost.

How Does It Differ from Homeowners Insurance?

Renters insurance is normally much cheaper than a homeowners policy. It does not cover losses to the structure of the building, so the risk to the provider is significantly lower—which is reflected in the price. Also, homeowners are usually required to purchase coverage if they bought their home with borrowed money to protect the lender's interest. In general, renters policies are purely voluntary, though a few landlords require coverage as a condition of the lease.

If you're in the market for a quality renters policy to protect your personal belongings, reach out to Reed Brothers Insurance in Lexington, KY. This agency has been serving Fayette County residents and businesses since 1912, so they have the experience and industry expertise you can trust. As an independent brokerage, they boast a wide provider network to ensure you get the best coverage at the lowest rate. Whether you need renters, homeowners, business, life, or auto insurance, they can help you protect what matters most. Learn more online, or call (859) 253-2728 to request a quote.