There are advantages to being a renter…
There are advantages to being a renter…
As a renter, you’ve got it pretty good: No property taxes, no lawn cutting, no snow removal … Just simple living!
But what would you do if you returned from work or a vacation, and all your possessions in your apartment had been destroyed by a fire? Or if there was a break-in and some of your most expensive stuff was stolen?
You may think that the building owner’s insurance will take care of all the damage caused by a fire.
Your building owner is only required to carry insurance for the structure. Usually, covering everything outside “your walls” is his responsibility, while everything inside is yours to cover.
This means all your furniture, electronics, appliances, clothing, and jewelry are uninsured unless you purchase a renter’s policy.
What Is Renter’s Insurance?
Renters insurance is property insurance that offers insurance coverage for your personal belongings, liabilities, and also living expenses in case of a loss event. This is available for people renting or leasing a single-family home, apartment, duplex, condo, studio, loft, or townhouse. This insurance policy will protect you against losses to the tenant’s personal property within the rented property. Furthermore, this insurance policy will protect you against losses leading from liability claims such as injuries occurring on the property premises that are not caused by a structural property within the property. In this case, the owner’s policy would then apply.
The Cost Of Replacing Your Stuff
If you’ve considered it all, you might think that the “stuff” you have accumulated isn’t worth that much. It may or may not be worth anything from a dollar amount, but that’s very different compared to how much it would cost you to replace it. Buying a new bedroom set, clothing, or a computer can cost much more than you think—especially if your current ones are older or out of date.
You’ll be surprised at how affordable renters insurance can be. Besides covering all your stuff, it covers you from being held liable if someone hurts themselves while they’re in your home. So in the unfortunate event, you’re sued, and the judgment goes against you, the renter’s policy will cover you up to the policy limits.
Do you need renter’s insurance?
According to recent estimates, nearly two-thirds of the 81 million people who rent their homes are uninsured for their contents or for any liability arising out of their tenancy. Don’t be a statistic …
First, do the math and add up how much it would cost to replace your belongings.
Second, check with the terms of your lease and verify if carrying a renter’s policy is required by your landlord.
Third, request a renter’s insurance quote to verify just how affordable it is to protect your belongings from perils like theft, vandalism, fire, and falling objects.
Renter’s Insurance Further Explained
Proof of renter’s insurance is required by most landlords. Your personal belongings found within your rented property are not usually covered under the owner’s property insurance. One example is when a flood or fire destroys all the personal property within a rented apartment, the structure would be covered under the landlord’s policy. However, the personal property would only be covered through a renter’s insurance policy. If you don’t have this coverage, you would be responsible for the loss out of your pocket.
Renter’s insurance typically offers these three kinds of financial protection:
- Coverage for personal possessions
- Liability protection
- Additional Living Expenses (ALE) protection
Renter’s Insurance Coverage for Personal Possessions
Your renter’s insurance will help you cover your personal property against loss due to theft, fire, and other kinds of disastrous loss events. You should acquire enough renter’s insurance to replace all of your personal belongings in case there is an event of a loss. We greatly suggest creating a detailed list of all your personal belongings with estimated values since this is the easiest way to determine the amount.
Furthermore, you can choose between replacement cost or actual cash value coverage. This kind of coverage will only pay for what an item was worth at the time it was damaged or destroyed. Replacement cost coverage costs more. However, this will provide you a payout large enough to purchase a new item to replace the old one at the current full retail price. In case your prized possessions are extremely high-valued possessions, you may want to add a floater which is a separate policy that offers additional coverage for expensive valuables in case they are lost or stolen.
In addition, renter’s insurance will cover you against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and certain kinds of water damage. However, not all of the renters’ insurance will cover floods or earthquakes. You can purchase flood insurance from the National Flood Insurance Program and from a few private insurance companies. For earthquake insurance, this can be bought separately or added as an endorsement to your renter’s policy depending on where you are located. For instance, in California, a state prone to earthquakes, the legislature made the non-profit California Earthquake Authority to help people living in the area to get affordable coverage.
Renter’s Insurance Liability Protection
One more protection for you from renter’s insurance is liability protection. This safeguards you against lawsuits for bodily injury or property damage done by the renter, their family members, and pets. This insurance coverage will cover legal defense fees up to the limit of your insurance policy. This also includes no-fault medical coverage. In addition, this also allows an injured person on your rented property to submit their medical bills directly to your insurance company in case there is a lawsuit.
Renter’s Insurance ALE Coverage
Additional living expenses or ALE coverage provides you financial protection against an insured disaster that requires you to temporarily transfer to a new location. This coverage will help pay for your hotel bills, temporary rentals, restaurant meals, and other living expenses while your rental home is being renovated or rebuilt. Most insurance policies will reimburse you for the full difference between your normal living expenses and additional living expenses. However, there is a dollar limit on the total expenses your insurance company will pay or a time limit on the ALE payments.
What else is covered?
Renters insurance can cover virtually all of your personal possessions. Most policies provide coverage for electronic goods and equipment, small appliances, sports equipment, cameras and photography equipment, furniture, clothing, glassware and china, and books. Items such as computers, jewelry, furs, watercraft, and firearms can also be covered with extended protection. Your renters insurance policy will generally include:
- Personal property protection
- Family liability protection
- Guest medical protection
- Additional living expenses
- Additional protection
- Temporary housing
- Liability protection for people on your property
- Lawsuits where you are held responsible for: Injury to another person; Damage to another person’s property (whether the incident occurred within your rented residence or elsewhere)
Again, we encourage all renters to spend just five minutes with a calculator to add up the cost of replacing everything they own. What if you came home tomorrow and your apartment had burned down? Where would you go? How would you pay to replace your clothing, furniture, and appliances? When you ask yourself what renters insurance covers, you can relax and say yes to all of the above.
Why We’re Different
You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…
While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.
There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.
We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.
Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.
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