Renting your house or apartment means you have less exposure to the same risks that owners do. However, that does not mean you do not need insurance coverage. Renters insurance is a unique protection specifically designed with tenants in mind. It provides liability protection, guards against the damage or loss of your personal belongings and takes care of your emergency living expenses when you are displaced from your home due to a covered event. It should not be considered an optional expense; rather, Renters insurance is essential for protecting your financial wellbeing. There is no scenario when foregoing Renters insurance is a good idea.
A standard renter's insurance policy in Illinois will provide three primary types of insurance protection:
Liability Insurance
Liability protection is something that everyone needs – including renters. Personal Liability Coverage applies if someone is injured or their property is damaged and you are to blame. The coverage generally applies anywhere in the world. When choosing your liability coverage limits, consider things like how much money you make and the assets you own. Your personal liability coverage should be high enough to protect your assets if you are sued. In some situations, an Umbrella policy may be necessary to provide extra coverage.
Personal Property
This coverage covers all of your personal belongings like clothing, furniture, electronics, and appliances. Basically anything that would fall out of your house if you turned it upside down and shook out the contents.
Emergency Living Expense Insurance
It is easy to forget about emergency living expenses until you find yourself in sudden and urgent need for housing and food for you and your family. If a fire causes smoke damage to your apartment or a tree falls into your rental home, chances are the property will be temporarily uninhabitable while it is repaired. Renters insurance can help pay for your hotel bill and meals until you are able to return home or find alternative permanent lodging.
