When someone rents an apartment or house, they sometimes assume that the insurance covering the building's owner also covers them. This is not correct; your landlord has insurance for structural damage to the building. But, the landlord's insurance does not cover your personal property, even if it results from damage to the building from events like: fire, windstorms or flooding.
Types of Policies:
Apartment renters and landlords need to purchase different types of insurance policies. HO-4 is the name of the policy for renters. This policy covers your personal property from 16 types of potential losses. These losses include accidents such as: fire, water damage, freezing pipes and smoke. In addition, Renter’s Insurance usually covers losses from theft of your person property. Floods, earthquakes and hurricanes are usually not covered by renters insurance without additional riders/endorsements.
Price of Renters Insurance:
An unforeseen loss can occur at any time. For example, a tenant from the unit above yours could leave the bathtub running, and water leaking through the ceiling could damage everything you own. It is expensive to replace all your belongings. The cost of the insurance varies based on your location, but the price is generally worth the investment considering the coverage and peace of mind the insurance provides.
These coverages can be expanded with Endorsements to your Renters Insurance policy.