Signing your first rental agreement with a landlord is a monumental moment in a young adult’s life. Although state and local government agencies do not require an individual to have renters insurance, having such coverage is in their best interest. Regrettably, too many renters are unclear about how this insurance policy works. Fuhriman Insurance Agency in Boise, ID, can assist you in creating a fool-proof renters insurance policy to protect your personal property.

Shielding Yourself From Liability Claims

Renters insurance covers all the legal expenses if you are involved in a liability lawsuit, typically filed by a guest who was injured or had their property damaged inside your home. Most renters have not accumulated enough personal wealth to pay for the injured party’s medical bills, lost wages, and repair or replacement costs. The coverage provided will cover all of these expenses.

Protect Your Possessions

For most residential buildings, insurance policies only provide coverage for the structure and do not cover a tenant’s possessions. Renters insurance protects your items from theft, vandalism, fire, and water damage. However, you will need to inventory your possessions with a dollar value for each item, either through photographs or a short video. Completing the inventory process guarantees swift financial assistance to repair or replace all lost, damaged, or stolen items.

Additional Living Expenses Coverage

Standard renters insurance policies include a clause for additional living expenses (ALE) coverage. If your rental property becomes uninhabitable following a natural disaster such as flooding, fire, or a severe windstorm, this could necessitate relocation. The ALE coverage helps pay for unexpected costs like an extended hotel stay while your residence is being rebuilt. Other ALE coverage includes temporary home unit rental agreements, moving expenses, and pet boarding costs.

For new renters, understanding additional insurance coverage can be confusing. At Fuhriman Insurance Agency in Boise, ID, our staff can assist you in creating a fool-proof renters insurance policy that safeguards you from financial catastrophe. Call and schedule an appointment today.