A Guide to Renters’ Insurance Coverage
Many renters are under the mistaken impression that they only need insurance coverage if they own their own home. They are even more mistaken if they think that their landlord will take responsibility for compensating them in the event of some loss-causing event to their property. The importance of good renters insurance can hardly be overstated and, sadly, many will not realize this until they actually need it.
Renters are wise to look into the options available for financial protection and this includes renter’s insurance protection. The fact is a landlord’s own policy will not protect renters in cases of theft, vandalism, flooding, or fire. While certainly a landlord will have his or her own protection, this kind of policy will only cover the landlord’s personally owned belongings and the structure of the building in which you have a rental unit. It will not, in the vast majority of cases, protect the renter’s personal belongings. Renters insurance is a surprisingly cost-effective choice for protecting personal items and extending valuable liability protection to a renter.
How It Works
Renter’s insurance provides coverage for tenants living in apartments, condos, townhomes and single family homes and covers much that a typical homeowner’s policy will also protect, like wardrobe and appliances, electronic items, computers, collectibles, furniture and more. Under renter coverage, your personal belongings will be safeguarded from fire, theft, vandalism, and some forms of water damage.
This type of policy also can provide protection from accidental damage you might inflict upon someone else’s property and can give you protection if you are sued by for an injury that happens while someone is visiting your rental home. With good renter’s coverage, you will be protected if, for instance, water floods the kitchen floor and damages the unit below, if a person slips on your kitchen floor and breaks a bone and sues you, if a burglar gains entry into your home and steals your stuff, and the list goes on…
A renter’s policy will even compensate you for living elsewhere while covered damages to your unit are being handled, if they render your home unlivable during the work.
Personal items are usually more valuable than many renters might think. The usual renter has between $20K and $30K worth of belongings, surprisingly, and it is important to keep in mind that none of it is protected under a typical landlord’s policy. Renters are advised to list an inventory of belongings. It is often considered wise to choose a “replacement value” policy that will pay out for the full replacement of items if a renter’s belongings are damaged. This is an alternative to the “fair market value” option. In this case the damaged or stolen items are often paid for at a significantly much lower rate.
Renter policies are surprisingly affordable, but there are still more ways to save on insurance premiums with the following discounts: Multi-policy; Home security; Retirees; Claim-free, and more.
A renter can receive protections potentially worth many thousands of dollars when buying coverage that ends up being a buck a day on average. Protect your vulnerable personal property from damages or theft by taking that first step in contacting an insurance professional today for a renter quote that leads to coverage and wonderful peace of mind.