Today, many renters are required to purchase renters insurance as a condition of renting. Even when this coverage is not mandatory, many people still opt for it to protect themselves against financial losses. Renters or tenant insurance offers many benefits, but it is important for policyholders to recognize the limitations of this insurance, which typically will not address the following situations.
Most renters insurance policies cannot cover high-value items, such as jewelry. However, policyholders can extend their coverage with floater insurance, which picks up where the renters insurance policy leaves off. Renters should make sure to understand their policy limitations and discuss additional means of protecting high-value items with an insurance agent.
Temporary or Special Housing
There are a few forms of housing that tenant insurance cannot be extended to, including college dormitories and executive housing. Renters insurance also excludes unconventional living arrangements, such as living in a hotel. In general, renters insurance cannot be used to address temporary living situations; the policyholder must officially live in the stated location for a set amount of time.
Finding Appropriate Coverage
Aside from these limitations, renters insurance typically offers widespread coverage. However, instead of blindly relying on a tenant insurance policy to come through when the worst happens, renters should always make sure to understand the limitations of the policy and discuss any questions or confusion with an insurance agent. This is the best way to ensure full coverage and minimize any losses.