A Beginners Guide to Renters Insurance
A renters insurance policy refers to a series of coverages intended to provide protection to renters living in an apartment or a house. These policies typically comprise of three types of coverage to protect the insured person, the insured person’s living arrangements, and his or her belongings after a covered loss. Noted insurance agency Paige & Campbell informs that renters or tenant insurance is designed to help provide cover for unexpected events, also known as covered perils. Under certain circumstances, it may not be possible for a renter to prevent a break-in, theft, or injury to a visitor. Renters insurance can be extremely useful in these situations.
Mentioned below are the different coverage types in a renters insurance policy and the available coverage.
Now, let us take a closer look at each of these coverage areas.
Renters Insurance and Personal Property Coverage: This is a standard component of all policies for renters insurance, and helps cover the replacement cost in case any of your stuff is unexpectedly destroyed or damaged. This form of protection applies generally to certain risk factors like fire. This coverage also provides protection for items stolen during a break-in while residing in a rental property. However, please remember that in general, personal property coverage is subject to a deductible. Therefore, go through your policy document carefully to understand your coverage.
Before purchasing a renters insurance policy, it is important to understand how much personal property coverage is required. Think of all your belongings and how much it would cost to replace them, in case they are destroyed or damaged. However, please remember that everything you own may not be protected by your personal property coverage. Under a standard renters insurance policy, there is limited coverage for items such as a coin collection or jewelry. It is possible, however, to add additional coverage, known as scheduled personal property coverage.
Liability Coverage for Renters: This coverage of a renters insurance policy helps the renters avoid paying out of pocket if they are found to be legally responsible for damage to the property or injuries to other people. For example, if a guest trips and falls in your rented house, the cost resulting from the accident may get covered by liability coverage. Just like any other insurance coverage, there are limits applicable to the amount paid by the insurance policy after a covered loss.
Renters Policy and Additional Living Costs: We all have high expectations while renting a house. However, under certain unforeseen circumstances, you may not be able to live in that house. This is the time when renters insurance can be your lifesaver. Covered cost generally includes the cost incurred for staying in a hotel and additional food expenditures resulting from your inability to live in the home that you have rented.
Filing a Renters’ Insurance Claim:
Mentioned below are some tips for filing a renters insurance claim. Please note that depending on the extent of damage, the claims process may vary.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.