What is renters insurance?
Renters insurance provides 3 types of coverage. After a covered loss, renters are protected by – liability that pays for your legal responsibility to others for bodily injury or property damage, loss of use coverage for additional living expenses incurred after a crisis, and loss of earnings coverage for lost wages caused by the insured event.
Understand what renters insurance covers
Homeowners insurance protects you against unforeseen circumstances such as theft or break-in, while renters insurance provides coverage in the case of an unexpected situation, like somebody getting injured on your property.
- With renters insurance, you can help protect yourself in the event of theft, break-in, and injury. Renters insurance covers events that might otherwise be tough to avert.
- Your insurance pays for the cost of repairing or replacing your belongings if they are lost or damaged.
- If you are found responsible, your claims will cover the costs of repairing someone else’s property or medical bills.
- Additional fees you have to pay, like hotel bills, if the property you are renting is damaged and left uninhabitable.
What renters insurance provides
Renters Insurance generally covers the loss of property that is unexpectedly damaged or destroyed. Typically, renters insurance can cover an amount equal to up to $10,000 of your personal property without you providing anything more than a description of the item and its value.
If your personal property is damaged in a fire then renters insurance might be able to help you pay for the cost of replacing it.
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While coverage limits will apply, renters insurance typically covers most losses that arise as the result of a covered peril such as fire.
When buying property coverage, be aware that there will usually be a deductible before the insurance company is willing to help subsidize the cost of repair or replacement.
How much coverage do you need with Renters Insurance?
Imagine all of the things you own. The cost to replace them can quickly stack up and become costly. How much would it cost if your possessions were destroyed?
You may have a few choices when it comes to your personal property coverage, so be sure to consider the following:
- To decide how much coverage to include, it is important to assess the value of your belongings. An inventory may be able to give you an idea about how much coverage is appropriate for your personal situation.
- There are two main types of coverage you can purchase, cash value and replacement cost. They differ in that if you have cash value, the insurance will pay to replace your items up to their current market value. If you have replacement costs, they will replace your items at their retail prices.
What you may not know about renters insurance
The standard renter’s insurance policy may not offer protection to your valuables, such as jewelry or a coin collection.
You can add the scheduled personal property coverage to your insurance contract which costs an additional premium and it provides a maximum payout in the event of a loss.
The local insurance agent can help you weigh the cost versus the benefit of this coverage for your situation.
Certain types of belongings are not protected by the standard renters’ policy. You may have to purchase additional coverage in order to protect your valuables.
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WHY DO YOU NEED LIABILITY COVERAGE WHEN YOU ARE A RENTER
Liability insurance coverage often comes included in renter’s insurance policies. It may help protect you from paying certain costs if the renter is liable for injuries or costs of their property.
Accidents can happen unexpectedly, and if your child or you are held liable for a guest’s medical bills, liability coverage may help you cover the costs.
Limits apply to how much your insurance policy will pay out after a covered loss. Before you purchase your insurance, make sure there is enough coverage for you and that it fits what you need. Your agent will help adjust the limits if it’s necessary.
How renters insurance can help with additional living expenses
If you need to live in a temporary place after your apartment is damaged by fire, renters insurance may be able to provide assistance. These policies typically last until your lease expires.
In a typical renters policy, additional living expenses are covered. This coverage could help you after any damage to your rental by giving you some extra money to live on.
Check your policy to learn how much is covered for living extras with the risk of loss.
Your renters’ insurance policy may include coverage for additional living expenses- additional costs incurred while you are unable to live in your rented home due to a covered loss.
Filing a renters insurance claim
When filing a renters insurance claim, it’s important to know the basics of what you should do in order to get through the process efficiently.
- Have a renters insurance claim? Contact your insurance agent now. You can get protection by repairing any damages as soon as possible. Talk to your agent about any problems.
- Your insurance company will ask you about the damage to your car and answer any questions.
Policy coverage and limits vary. Speak to your agent to get advice for your specific case.
- When something needs to be repaired, document the damage before any further work is done. Take photos and videos of the damaged item so it’s not possible for someone else to tamper with or lose documentation.
- You need to pay a deductible before renters insurance pays for any uncovered checks. Your deductible can vary based on the number of your premiums, and the more you play, the less your deductible will be.
- Your policy’s deductible is calculated based on your premium. The lower the premium, the higher the deductible.
Renters insurance does not cover the building you are living in. It only helps protect your belongings and yourself.
Landlord insurance typically provides less coverage than renters insurance, but it protects the dwelling, in which tenants are not usually expected to offer protection.
Renters insurance protects the renter’s belongings but doesn’t cover the building. Landlords typically need to look into landlord insurance, and protection may not be extended to the tenants.