Yes, you read that right. Your landlord’s building insurance doesn’t cover your personal belongings. If anything, the building insurance only covers things considered to be a permanent part of the property. This includes fixtures like doors, windows, the roof, walls, and floors.
Also, a typical building insurance policy covers the owner from damage that’s out of their control. This includes (but is not limited to) flooding, explosions, arson/fires, malicious vandalism/damage, and storm damage. If you want to protect the property in your rental home go for renters insurance instead.
What is Renters Insurance?
Also known as tenant insurance, the rental insurance policy covers unexpected events, better known as perils. It cushions you from situations such as break-ins, theft, and a visitor’s injuries. In essence, renters insurance protects you from:
- Loss or damage to personal property
Rental insurance will help you cater to the cost of replacing or repairing your belongings. This can be anything from clothing, electronics, furniture, etc. However, the policy doesn’t cover any personal property loss that goes over your coverage limit.
With rental insurance, you don’t have to worry about catering for repairs when you accidentally damage your neighbor’s property. It can even cater to a guest’s medical bills if you’re responsible for their injuries.
- Additional living expenses
Rental insurance also covers any additional costs you incur like hotel bills, especially during an emergency. For instance, the place where you rent may get damaged forcing you to relocate for some time. Rental insurance caters for such expenses.
You should get a rental insurance cover with personal property coverage as it ensures that you’ll get reimbursed if you lose your items because of theft. Still, this coverage is subject to deductibles, meaning you’d have to pay installments towards the covered items for the insurer to compensate for the loss.
The personal property coverage you need
When taking out rental insurance, you’ll have different options in terms of choosing the most appropriate personal property coverage. As a rule of thumb, consider a cover that caters for everything you own. You may need to value all your belongings to figure out how much money it would take to repair or replace them if they were to be destroyed or damaged.
In conclusion, pick a policy plan with coverage limits that match your situation. Most policies typically cover personal belongings as per their current market value.