My last post covered the need to protect your belongings. This time, we deal with Additional Living Expense, or having someplace to live if your apartment is damaged or destroyed.
Additional Living Expenses
Many people are pleasantly surprised to learn that Additional Living Expense (ALE) coverage is typically included in a renters insurance policy. If the home or apartment you are renting is damaged or destroyed and you need to live elsewhere while it is being repaired or rebuilt, renters insurance will cover your additional living expenses—namely the difference between your regular living expenses and the additional costs incurred by having to live away from your home, such as hotel bills, temporary rentals, restaurant meals, etc.
Renters Insurance: The Final Chapter
Standard renters insurance policies also provide liability protection in the event you or members of your familiar cause injury to others or damage their property.
If you are sued, the liability portion of a renters policy may pay for both the cost of defending you in court and for court awards, up to the limit of the policy. Liability limits generally start at about $100,000. If visitors are injured in your home, regardless of fault, you can submit their medical bills directly to your insurance company. You can generally get $1,000 to $5,000 worth of this coverage.
The problem with trying to determine how much liability coverage is enough is always difficult. You never know what you are going to do to someome, to whom you are going to do it, or what their reaction is going to be. How much would you want the insurance company to pay if you were sued for $1 million?
Need help deciding what coverage is best for you? Contact us today!