Individuals who rent their homes are entitled to purchase what is called renter's insurance. Renter's insurance offers protection for personal possessions as well as finances of the individuals.
The coverage under renter's insurance includes:
- Contents Coverage: Under the contents coverage, renters are provided coverage for their personal belongings kept in the rented home. This coverage is provided for damage caused to home decor, clothing, furniture, electronics items, and so on in the occurrence of an event or peril so covered. Such events may include lightening, hail, wind, riots, fire, volcanic eruption, theft, and so forth.
- Coverage for loss of use: If the home rented is damaged, then the renter may be required to seek shelter in an alternative house while the damages are repaired. This coverage provides for the living expenses while the renter stays in an alternative location.
- Coverage for Medical Payments: Also called MedPay coverage, this provides for medical reimbursements in the event of injuries caused to someone at the property of the renter. Such coverage is available only if there is not an ongoing lawsuit.
- Liability Coverage: Such coverage protects the renter in the event a lawsuit is brought to the renter or other person covered by such a policy for causing damage or a bodily injury to any other person or that person's property.