FREQUENTLY ASKED RENTER'S INSURANCE QUESTIONS

• Your liability
• Your personal property
• Your additional living expenses
• Medical payments to others

Every renters insurance policy is a named peril policy: your insurance will cover you in the event of any of the circumstances specifically listed on your policy. A peril is a cause of damage.

For example, if your apartment were to catch on fire and the contents of your living room were destroyed, your renters insurance would compensate you up to your coverage limits.

Renters liability insurance provides coverage if you are found legally liable for bodily injury or property damage to someone or their property.

Although your liability coverage is worldwide, it will not apply if you're driving. Your auto insurance liability will provide insurance coverage in the event of a car accident — not your renters.

Below are typical examples of a liability claim for renters insurance:

• A pipe bursts into your kitchen and causes water damage to your downstairs neighbor's apartment.
• Your dog bites another person, requiring medical care. 

Typical liability limits start around $100,000. We recommend keeping them as high as you can easily afford in order to protect any assets you have. 

This comprises someone suffering an injury on your property, your pet biting someone on the premises or structural damage caused to neighboring apartments. Unlike your personal property coverage, your liability insurance does not use a deductible — the amount deducted from your claims payout.

Personal property includes anything you own — your clothes, furniture, artwork, etc. This coverage does apply outside of your listed residence (such as your car or if you're traveling) but for much less coverage. Typically, your coverage will only apply to theft and you will receive less in financial compensation — about 10% of your total personal property amount.

A big caveat for renters insurance is the limits of liability your insurance company will place on high-value items. For items such as cash, jewelry, guns and artwork, your personal property coverage will be limited.

If your apartment is unlivable due to a covered loss, for example, a fire, additional living expenses — also known as loss of use — would pay for you to live elsewhere temporarily. This coverage will usually be limited to a certain duration or reimbursement limit.

If a friend or family member hurts themselves in your apartment, medical payments coverage can pay for their medical bills.