What Does Renter’s Insurance Cover?

Posted in Home Insurance

Rental insurance coverage, sometimes called “tenant insurance’, is designed to protect you and your belongings from loss. Whether you rent an apartment or a single family home, the right policy provides liability coverage, protection for your personal property and even additional expenses should the home you live in become temporarily uninhabitable.

Typical Colorado Renters Insurance Coverage

Renters insurance in Colorado offers protection from specific named perils, such as fire or theft. However, maximum limits do apply, meaning different policies have different amounts that they will pay out for personal loss. It’s important to read the policy carefully to understand what is and what isn’t covered. However, most policies offer three distinct types of coverage:

  1. Personal property
  2. Liability
  3. Additional living expenses

Personal property coverage varies, and is based on your policy limits. But, in general, it includes the cost to repair or replace items such as clothing, furniture and stereo equipment for example. Colorado Liability is protection for you in the event you damage someone else’s property or injure them physically. If the home you rent is damaged and becomes uninhabitable, any additional living expenses you incur, such as the cost of staying at a hotel for instance, is typically covered by renters insurance.

What Is Not Generally Covered in Colorado

While renters insurance covers a significant amount of your personal belongings, it doesn’t cover everything. Valuable jewelry, furs and collections, like coins, comic books and baseball cards for example, would not be covered under a traditional renters insurance policy. The good news is, you can easily secure additional coverage in Colorado for more valuable items—referred to as scheduled personal property coverage. 

Actual Cash Value Versus Replacement Cost 

Another factor to consider when looking into renters insurance is actual cash value versus replacement cost. Understanding the difference is important for securing the coverage you expect for your personal belongings.

Actual cash value protection means that after a loss, you receive compensation for your belongings up to their current market value, taking depreciation into account. Replacement cost usually covers the cost of replacing damaged items at current retail value.

Let Us Help You Secure Peace of Mind

Renters insurance is a smart, practical way to protect yourself and your belongings from unexpected loss. If your child throws a baseball and breaks the neighbor’s window, or if an electrical fire destroys your work wardrobe, having a policy in place is an easy way to get peace of mind.

As is true with all insurance, you must pay a deductible before your insurance can be applied. Deductibles are often linked to the premium amount, meaning you can increase or decrease how much you pay based on what works best for your budget.

When you’re ready to explore your options, let our experienced team help you find the right policy to fit your needs.



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