What Does Renter's Insurance Cover?

Renter's insurance has recently become more and more of a necessity as so many American's are forced out of home ownership due to foreclosure and become renters. Many people find themselves asking the questions, "What does renter's insurance cover?" and, "Will my (fill in the blank) be covered?" From jewelry to electronics, renter's insurance covers hundreds of thousands of different items and the right renter's insurance policy can cover basically anything in your home.

Does Renter's Insurance Cover Jewelry? When it comes to jewelry, many renter's insurance policies have a limitation as to the amount that can be covered for jewelry. If you have a large or substantially worthy collection of jewelry then you need to make sure that the renter's insurance policy that you purchase will actually cover the amount that your jewelry is worth. You can always pay for additional coverage on a policy if you find that your renter's insurance does not adequately cover the value of your jewelry.

Does Renter's Insurance Cover Firearms? Certain policies will not offer coverage for firearms due to the extreme liability of the weapon. In most cases, you can get firearm coverage on your renter's insurance policy but it will be a limited coverage amount such as only $2,500. If the value of your firearms are higher than this then you will need to purchase what is called a scheduled personal property endorsement for these items. This will give each items that is listed on this endorsement a definite value of coverage.

Does Renter's Insurance Cover Cash on Hand? If you have a large amount of cash on hand it is suggested that you get a bank account where your money will be safer kept. Renter's insurance will typically only cover amounts of cash under $500 and usually more like $250! I do not suggest keeping more than a couple hundred dollars at your home because there really is no way to insure the amount of cash that you have on hand if it is more than that!

Does Renter's Insurance Cover Business Equipment at Home? If you run a home based business then you should still carry business insurance to cover the cost of your equipment and business related assets that may be at your home. Business equipment is usually on a limited coverage basis on a renter's insurance policy. Ask your insurance agent what your renter's insurance policy covers in regards to business equipment at home and then you can save some money by purchase a business insurance policy usually from the same agent.

Does Renter's Insurance Cover Liabilities at Home? You should purchase additional liability insurance with your renter's insurance policy. Your renter's insurance policy will usually have the option of liability coverage which will cover the cost that you would otherwise incur if somebody were to get hurt on your property. It is recommended that anybody renting a home or apartment get additional liability insurance on their renter's insurance policy to keep from having their assets taken in a lawsuit in the event that somebody gets hurt and sues you!