If you are in the market to buy renters insurance, then you need to know exactly what you are getting. Your insurance agent is here to help guide you through enrollment and review your coverage at any time. Still, personal insurance literacy is important, because it will enable you to reference your policy at any time to know exactly what coverage you have, and how it works for you. 

Renters policies contain a variety of different terms and conditions, and each directly influences the benefits you receive if you file a claim. Some of the most important ones to keep in mind are: 

Possessions Insurance 
Possessions insurance covers your belongings within your rented home. It might help you repair or replace furniture, personal appliances, clothing, electronics and other personal items of value following unexpected or unavoidable losses. Coverage will not insure the rental unit itself because this is not property that you own. 

Liability Insurance 
Most landlords require their tenants to purchase liability insurance. When a tenant is responsible for causing injuries, property damage or other losses to a third party (a neighbor or friend, for example), it is this coverage that will compensate the third party on the insured’s behalf. Therefore, you won’t face a significant personal challenge just because you have to take responsibility for your mistakes. 

Loss of Use Insurance 
A hazard in your rental home might force you to temporarily move out until the necessary repairs can be made. Loss of use insurance allows you to pay for dining, hotels and other expenses that arise because you can’t live at home temporarily. 

Covered Perils 
Your renters insurance is designed to only cover unexpected, unavoidable losses, not normal wear & tear around the home. Covered perils are the specific incidents that will qualify you to make a claim on your plan. They often include hazards like fires, theft, property vandalism, storm damage and burst pipes. Critically, however, floods will not be covered. 

Deductibles 
A deductible will apply to certain renters insurance claims. This is an amount of money that you agree to pay towards your own losses yourself. For example, if you have a $500 possessions insurance deductible, and you file a claim for $1,500 in property damage, then your policy will only pay $1,000 of that cost, since you agreed to cover the remaining $500 yourself. It’s important to choose a deductible that you can reasonably afford. 

Endorsements 
Renters insurance plans will contain endorsements by default. These are the changes that you have to make to your plan to make it work for you. Endorsements can be used to significantly increase your coverage, and there are a myriad of choices like replacement cost contents insurance, sewer overflow coverage and pet bite liability insurance that will be adaptable to the niche risks you face at home. 

All in all, you can make your renters insurance work for you, and with the help of your insurance agent, you’ll be able to do so easily. Just get in touch with us to learn more about our network of quality renters insurance benefits.