A renters insurance protects your damages against personal belongings such as furniture, jewelry, luggage, and electronics. People renting an apartment or a home need renter’s insurance to cover the losses against their personal belongings. Some people believe that property or landlord insurance policy can cover the losses for renter property but this is not the case. The landlord insurance does not cover for the personal belongings and certain liabilities. Here the renter’s insurance comes into play. This policy covers liability and personal belongings such as jewelry, electronics, furniture, clothes, and luggage. However, renters need this policy to cover these factors. This comprehensive guide dives into the coverage and needs of the renter’s insurance.
What is renters insurance?
The renter’s insurance policy is designed to cover the losses and damages that standard landlord policy does not cover. This policy covers personal property such as luggage, furniture, electronics, and clothing. This policy also covers the liability, for example, if someone is injured at your property and you are sued, this policy covers the medical expenses for the treatment. Furthermore, if you need some legal fee to resolve the issue this policy offers the expenses.
How does the renters insurance work?
Renter’s insurance covers the losses related to your renter’s property and your personal belongings. If there is damage to your belongings the renter’s insurance helps to cover the associated cost.
There are two types of coverage options:
Actual cash value coverage:
It is the cash coverage for the repairmen of the damage at the time of the loss.
Replacement cost coverage:
It is the replacement cost to replace the item or loss.
What does the renter’s insurance cover?
Renter’s insurance covers the loss or damage of your personal belongings in case of covered perils such as:
Fire
Theft
Lightening
Vandalism
Impact by vehicle
Windstorm
Personal belongings:
This policy covers the loss of your belongings that cost hundreds of dollars. For instance, your electronics such as smartphones, tablets, TVs, and laptops cost dollars, how would you cover the loss in case of any damage? Or think about the costly clothes and jewelry you have. The renter’s insurance is the only way to save your belongings in case of any unforeseen event. Moreover, it also covers your furniture such as sofas, tables, chairs beds, etc.
Liability coverage:
Liability coverage is designed to cover the loss in case, a person visits your home, gets injured, and needs medical attention. This coverage helps to manage the legal fees and any other medical expenses. Here are some possibilities that could occur:
Your dog bites someone’s child
One of your guests tripped and fell inside your property.
You hosted a party for your friends and things got out of hand.
Additional expenses:
Suppose your home is inhabitable for you because of damage and needs repair. This policy offers you living expenses beyond your rent amount. For instance, if you have to stay in a hotel until the repair, the policy offers the expenses for the meal and hotel’s rent.
What does the renters policy not cover?
Following are the coverage that are excluded from this policy;
Damage due to earthquakes and flood
Damage to other’s property or belongings
Damage or stolen Vehicles are not included
High-value items
Wars or terrorist attacks
Why do you need a renters insurance policy?
It is affordable:
The renters insurance is relatively more affordable than other policies. According to NAIC (National Association of Insurance Commission), it costs 15-30 dollars per month in 2020. Since your policy cost varies according to the level of coverage, your location, and your needs, it may vary.
Covers damages to personal property:
The most attractive coverage of this policy is that it covers the losses of your personal belongings such as jewelry, furniture electronics, etc. It covers the losses from perils including:
Fire or lightning
Theft
Volcanic eruption
Falling object
Aircraft
Explosion
Windstorm or hail
Vehicles
Smoke
Vandalism
However, losses from the flood and earthquake are not covered by the renters insurance policy. The policyholder needs to buy a separate policy for this purpose.
Landlord insurance requires this policy:
Your landlord’s property covers only structure or building-related damages. However, it does not cover personal belongings. The policyholders often require this policy along with their landlord insurance policy.
It provides liability coverage:
This policy includes liability coverage. This policy provides coverage if someone is injured on your property such as falling or injured by your pet. It offers the court fees and medical expenses for the treatment.
The policy provides at least 1000,000 dollars for liability coverage and a smaller amount for medical expenses.
Coverage of belongings while you travel:
This policy covers belongings, whether in your home, car or while you travel. It protects your possessions from theft as well. Furthermore, you can review your policy and ask for more from your agent if needed.
Covers additional expenses:
The renters insurance bears the expenses for your temporary living and meals if your home is inhabitable. You can review your policy to check the duration for the payment of meals and living expenses.
Concluding, the renters insurance covers several crucial aspects associated with your personal belongings that landlord insurance does not cover. For instance, liability coverage, personal belongings, and additional coverage. However, it is necessary to buy this policy for the renters to save their personal belongings. The policyholder should carefully go through the policy terms to know what is covered and what isn’t. Stay in touch for more updates.
FAQs:
What is the cost of renters insurance?
The average cost of the renters insurance is 15-20 dollars per month. It depends on the needs of the policyholder and the type of coverage you buy.
What is HO6 insurance?
An HO6 insurance policy is a homeowner insurance policy for those who own a condominium or co-op unit.
What is the purpose of renters insurance?
The main purpose of this policy is to protect your possessions from loss such as electronics, furniture, clothing, and jewelry.
You can review your policy to check the duration for the payment of meals and living expenses. This comprehensive guide dives into the coverage and needs of the renters insurance.
