Renters insurance comes to the rescue when a covered loss occurs. Each policy will have a list of covered perils, that is, covered causes of loss or damage.

Renters insurance is designed to cover damages or losses due to occurrences beyond the policyholder’s control, such as a fire, windstorm, lightning storm, or explosion. Damage from negligence or normal wear-and-tear usually isn’t covered.

If a covered loss happens, you will report it to your insurance provider. The company will then review your claim and investigate your loss. If everything checks out, the insurance will pay your claim amount minus your deductible. For example, if you have a $500 deductible and file a $10,000 claim, you will receive $9,500.

For liability claims, you will follow the same process of contacting your insurance company and filing a claim. There is usually no deductible, however.

Once you settle your claim, you can get back to normal life.

Look at the coverage provided by each insurer you consider. Common types of coverage include:

• Personal property: Helps to replace your personal property if it is damaged or lost in a covered incident, such as a burglary or fire. Note that unique or expensive items like furs, jewelry, or collectibles may require a dedicated add-on policy. Some possessions may be covered by some policies even when moved outside the home.
• Personal liability: Covers legal costs if someone is hurt in your home or you accidentally injure someone and are sued.
• Guest medical protection: Coverage for medical payments if a guest is injured on your property. Sometimes called “no-fault medical coverage.” A helpful addition to liability coverage because it will allow people hurt on your property to submit their medical bills to your insurance without going to court.
• Additional living expenses: Coverage of living costs if you can’t stay in your home due to a covered accident. A few examples are restaurant meals, hotel bills, and temporary rentals.
• Identity theft insurance: Insurance to cover the losses and damages caused if someone steals your identity.
• Property damage to others: Coverage if you accidentally damage or break someone else’s property.
• Add-on coverage: Providers may also offer riders to expand your coverage for such items as expensive watches, jewelry, furs, and other valuables.

It’s important to identify which coverage types you need and then check whether potential insurers offer them. A great way to save is to tailor a policy to only include the coverage types you require. Some insurers and policies may allow greater customization than others.