Mystified about what type of insurance you need as a renter? Don't be! With The Greater Austin Newcomer Guide's lowdown on renter's insurance, you'll be an insurance buying pro in no time.
Renter's Insurance, which also goes by the name of tenant insurance, will replace or repair your belongings if they are stolen, damaged or destroyed. In other words, it covers the property inside the house or apartment you are renting. Your belongings aren't covered by your landlord's insurance, which just covers the structure in which you are living.
Renter's insurance policies usually have three types of coverage: personal property, loss of use, and personal liability. Personal Property will reimburse you for repairing or replacing your affected belongings. There will be a dollar limit on the total amount and on individual types of belongings.
Loss of Use covers any additional living expenses, such as eating out or living in a hotel, that you have to make if you have to move from your apartment because of a covered loss. Usually, the cap on these expenses is 20 percent of a policy's personal property coverage.
Personal Liability will pay any costs in a claim or lawsuit if someone is injured while at your home. Normally renter's policies provide $25,000 in liability coverage and cover your legal fees. Additional liability coverage can be purchased for a higher premium.