You may think because you do not own the structure of where you live, you do not need to get insurance for the place you live in. Although the structure is not yours, you still have your belongings inside it.
Insurance is a form of protection from potential losses who may result from unexpected and unfortunate events. It is always important for everyone to be prepared for these losses and have a fallback investment to cover for these.
What Is Renters Insurance?
Renters insurance is a type of insurance that protects the belongings you have with your apartment, condominium, or whatever space you are renting. The insurance for the building is the responsibility of your landlord. The insurance for your belongings and yourself is your responsibility. Sometimes your landlord may require that you rent insurance before you can avail a space in their building.
A renters insurance covers for you and your belongings when these happen:
- Fire
- Lightning
- Explosions
- Windstorm
- Riots
- Damage by aircraft
- Damage by others’ vehicle
- Smoke damage
- Theft
- Vandalism
- Sink, Toilet & Tub Overflow
- Falling Objects
- Windstorm
- Replacement Cost Coverage
- Visitor Injuries
- Water Damage
- Dog Bites
- Mysterious Disappearances
The items it covers are:
- Furniture
- Clothing
- Electronics and appliances
- Legal fees and medical expenses for someone who was injured on and because of your property
- Damages cause to someone else’s property
If you have expensive items like jewellery, antiques, and other stuff, you may need to purchase special coverage for these besides your renter’s insurance. You can also customize your renter’s insurance policy by basing it on a personal or specific setting.
As enumerated above, medical insurance and liability coverage is also included in your renter’s insurance.
The Components Of Renters Insurance
As a renter, it is your responsibility to learn more about renters insurance. More so, the knowledge on renters insurance will guide you into a better evaluation of the insurance policies that will be presented to you by different insurance providers. Here are its major components:
Personal Property Coverage
Renters insurance policies provide coverage for your personal property. Personal property coverage protects your property when they get stolen, damaged, or destroyed because of the unfortunate events enumerated above. When your appliances or electronics get stolen, with personal property coverage you will still be able to cover it. Mainly, the personal property caters to everyday-use items such as food and HomeGoods, cookware, clothing, and furniture.
There is a maximum amount your policy can pay when you need to cover for losses. This is your limit. This is why special coverages may be advised when you have expensive items. When something unexpected happens and the damages sum up to more than your limit which is $30,000, and for example, the damages are worth $70,000, only $30,000 will be reimbursed.
In situations where you live with someone else like a roommate, you do not have to worry about their belongings since your insurance policy will only be covering yours. However, of course, it is best that you encourage your roommate to get renters insurance as well.
The Personal Property Coverage You Need
In evaluating how much coverage you need, it is best for you to make an inventory of what you own. With this, you can decide the amount of personal property coverage you need and will be purchasing. Here are important details of making an inventory for your evaluation and for what you will be presenting for your insurance provider:
- Receipts, credit card, or other proof like bank statements to validate the purchase of the item and price
- The year the item was purchased or made (it can be an estimate)
- The estimated value of the item
- For filing claims, photos and videos of your belongings or the specific items you have chosen are important
This is also very significant and helpful in getting a renters insurance quote. If you want to know how much renters insurance will cost based on your personal situation, you can get a renters insurance quote with Simply Insurance.
Liability Coverage
One of the main components of renters insurance is liability coverage. In availing a renters insurance, you may choose how much you want your liability coverage to be. Liability Coverage has its subcomponents:
- Personal Liability Coverage
This component of liability coverage offers you protection when someone holds you accountable and liable for their injury or damages experienced from your rented space. Examples of these damages are when your plant vase falls and hits someone else’s car. Expect that they will be asking you to cover for the repair expenses. In this situation, your renter’s insurance will compensate for the cost of the repair.
- Medical Expenses Coverage
When an accident is caused by your property and someone is injured, you will be held liable for the person’s suffering. It is possible that medical coverage can take up to your policy’s limit. Additionally, even when you are not in your property and you accidentally or intentionally harm someone else, you will have to pay medical fees. However, it takes effect only after their own health insurance has paid for their injuries. So you should not forget to remind them to file a claim first from their health insurance provider. More so, another example of this is when your pet dog bites a visitor or someone else.
The Cost of Renters Insurance
One of the myths you must have already heard is that renters insurance is expensive, but as a matter of fact, renters insurance commonly costs only $12 a month or $144 per year. This is for a renters insurance policy that has $30,000 of property coverage and $100,000 liability coverage.
The Value of Your Belongings
You may think your properties or belongings do not have value enough to be worth insurance. However, when you add up all the costs of each item you own in your apartment: your laptop, your appliances, your table, your bed, your clothes, and such, you’ll realize the value of your property is something you need to secure. If these things were lost or damaged, you will need money to replace or repair these damages and losses.
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