Most tenants do not insure their property on the assumption that nothing will happen to it. This article will take you through the benefits of insurance for renters and how it might save your finances in the long run. Hence; the renters insurance provides the cover to your personal belongings whenever damage or disaster happens to your property.
What renters insurance covers
On the assumption that you have signed a lease with a homeowner, one would assume that his/her property is covered within that policy, leading many to lose thousands of dollars when their personal property is lost during natural disasters or even theft. The landlord’s insurance only covers the house and the grounds. On the other hand, renters’ insurance covers losses to personal property from disasters such as, fire or lightning, damage caused by air craft, damage caused by vehicles, damaged caused by smoke, damaged caused by volcanic eruption, theft, vandalism or malicious acts, explosion and falling objects etc., to your personal belongings. When you acquire the insurance make sure that you have listed all of your assets you want included in your policy so as to avoid disappointment when you make your claims. Standard insurance policy also includes liability coverage which shall cover you if you get injured in the rented property and it will also cover your bills if you are going to take the matter to the courts, hence; it covers your legal expenses up to what you are insured.
What’s not covered by the insurance
The insurance does not cover what is not included in the policy. So it is important to read through and understand your policy before you accept it. Of paramount importance is that the policy will not cover any damage caused by the tenant’s negligence to his/her property. For example, sleeping while your gas stove is on and then causes fire which might burn half of your property. So you have to make sure that you are careful whenever you are renting in someone’s property.
Short comings of the renter’s insurance policy
Most standard policies do not cover losses that are related to floods and earthquakes. You would need to create a clause that would cover such risks. Such clauses might also be required for areas that are prone to hurricanes and storms. Thus, this would assist you if your property becomes inhabitable after the disaster. This clause would help you get cover on additional living expenses which include costs associated with you going to leave somewhere else be it a motel or hotel as a temporary measure.
How to purchase renter’s insurance
Before you purchase your insurance always make sure that you have exhausted all your options, as the costs might vary from company to company. Eventually you will find one that suits your budget and the one that covers your property to the extent you want. Most of the applications might be done online, but it is always important to get to the offices in person and do your applications. This will give you the chance to get any of your questions answered face to face providing comfort and confidence to the policy you are signing up for.
As the renter you will get the option whether to choose a policy that replaces your property or actual cash value. With the replacement policy, you will get the actual damaged property back and with actual cash value, you will receive cash based on the amount your items would cost. For example, if your Piano cost $5000 three years ago gets stolen from your rented apartment, replacement cost coverage will pay for a piano of similar quality and age. Whilst actual cash value on the other hand would estimate the value of the piano, which will be likely less than the actual amount you paid for it.
Nonetheless; as a renter one should make sure that his/her property is well covered and should never assume that your property is covered by someone else’s insurance policy. Word of advice; take responsibility of your property by getting your renter’s insurance.