RENTERS COVERAGE EXPLAINED
A Renters Policy (or tenants insurance) is a package type policy which means that it includes protection against several types of losses.
Coverage for your property can be "broad perils" as opposed to being limited to certain types of losses. You should be aware of the difference between the available policy types.
A more limited policy type will specify the types of losses for which you will be covered. A "broad perils" policy pays for fire, vandalism, hurricane, theft, explosions, aircraft crash, breakage of glass, ice, auto, and other perils that cause loss or damage to your personal property.
Most renter insurance polices include the following coverages:
CONTENTS - PERSONAL PROPERTY
We'll provide you with an inventory sheet to list your personal property and values.
Certain property has specified limits of coverage. The inventory list will help us determine if you need extra coverage for those items.
"Replacement Cost" coverage is included, unless you specify it is not needed.
REPLACEMENT COST
Replacement cost insurance coverage provides you with the necessary funds to replace your personal property at today's costs, as it was at the time of an insured peril
Unlike other types of insurance, replacement cost insurance does not depreciate your property of contents values. Every covered item that needs to be replaced will be treated as if it were brand new.
LOSS OF USE
In the event you could not live in your home after an insured peril occurs, the homeowners policy offers payment of temporary living quarters while you are waiting for repair work to be completed. You would also have additional expenses such as food and laundry paid for as well.
MEDICAL PAYMENTS
Another included coverage is for bodily injury medical payments to a non-policy holder. Medical payments can be made to others (those not in your immediate family) up to the stated limit amount. This will often prevent going to court to see whose "fault" it was. The amount paid will cover many minor accidents regardless of who was responsible.
PERSONAL LIABILITY
The homeowners policy also covers claims for bodily injury or property damage for which you are legally responsible. This normally excludes auto and business related claims. You would be covered up to the stated liability limit for each accident.
Examples would be:
Your dog bites the neighbor
You injure someone in a hunting accident
Your child breaks someone else's window with a baseball
Someone is injured on your premises
* PLEASE NOTE - THESE ARE ABBREVIATED DEFINITIONS. THE ACTUAL POLICY ITSELF SHOULD BE READ FOR EXACT COVERAGES, DEFINITIONS AND EXCLUSIONS.