home insurance

If you live in a rented home, you may think that you're covered by your landlord's insurance policy. The fact is, you're not - a landlord's property insurance covers damage to the structure of the property itself, and it does not cover your personal possessions or liability. You need renter's insurance for that. 5 main coverage of a basic renter's insurance policy

A typical renter's insurance policy will cover you for damages caused by:

• Windstorm, hail, lightning, ice, snow, and sleet
• Fire and smoke, explosions and volcanic eruptions
• Aircraft and ground vehicles, falling objects
• Riots, civil disturbances, vandalism and other malicious destruction
• Water damage caused by utilities, and damage caused by electrical surges

It will pay rent for another property while your original property is repaired, or until you relocate to a permanent home. There is a time limit attached to this type of coverage - once you reach the limit (which is usually no longer than 12 months), the insurance will not cover expenses.

Renter's insurance has another benefit- it also covers you for liability, meaning that if someone is injured while on your property, you are covered for the cost up to your liability limit (which is determined by your specific policy terms). This means you are covered for that person's medical expenses, legal costs if they should decide to sue, and any damages they might be awarded.

Note that flood and earthquake damage is not covered by a standard renter's insurance policy, because these phenomena tend to be restricted to certain parts of the country. If you do live in an area where such things occur, then you will need a separate policy. Also, if you live in a coastal region where hurricanes are destructive, extra coverage might be required for windstorm damage.