If you are renting a condo, apartment, home, or other dwelling, it is strongly recommended that you purchase a renters insurance policy. However, many renters do not fully understand what a renters insurance policy covers and why it is important to carry this type of insurance policy. Here are three ways in which renters insurance can cover you as a renter. 

Protects Your Property Against Loss

One of the most common reasons people who have renters insurance file a claim is for property loss. Property loss can occur in a number of different ways. Someone may have broken into your home and stolen property. A fire may have broken out in your property, and your belongings got burnt or damaged by the water used to fight the fire. Or your home may have flooded and your electronics were damaged. Renters insurance will pay you fair market value for your belongings, helping you to replace your items that were destroyed. 

Helps You if You Are Named in Certain Accidental Injury Lawsuits

Another way that renters insurance can cover you is by helping you if you are named as a defendant in certain types of lawsuits. If you invite someone into your home and they slip and fall or are injured, they may name you and the property owner as defendants in a personal injury lawsuit. Renters insurance helps to defend you against the case, which prevents you from having to hire your own attorneys. 

Covers You in the Event of Loss of Use

The final way in which renters insurance can cover you is by helping you in the event your home because unlivable. For example, say the home you are living in floods. You may be unable to occupy that home until the water is removed and it is properly cleaned. Renting a hotel or temporary vacation rental can be costly. Renters insurance will pay the difference between your normal rent and the cost of living in a suitable situation until your rental is ready to be occupied again or you find a new rental to reside in. 

Renters insurance can help to protect you in the event something unexpected happens. The owner's homeowners insurance policy does not cover you or your property as a renter, so it is important to protect yourself and have your own coverage. Contact an insurance company, like Bear River Insurance, today to learn more about renters insurance policies or to get an estimate for a new renters insurance policy.