What is Renters Insurance?
Renters insurance policy, frequently known as tenants’ insurance, is one of the most valuable financial protection available to the tenants. If you rent a house, apartment, condo, etc., you need renters insurance because homeowners insurance policy only covers the building structure and not the personal items inside your walls.
Renters insurance provide coverage to protect you and your personal belongings such as furniture, clothes, jewelry, laptop, etc against fire, theft, vandalism. The insurance policy will help you pay to repair or replace the stuff. It also provides coverage for medical treatment if somebody is injured at your home or premises because of your fault. Moreover, if the injured person files a lawsuit against you, it will help you pay for the legal defense fees up to a limit.
What do renters insurance cover:
1. Fire or lightning
2. Hail or windstorm
4. Riot or civil commotion
5. Damage caused by vehicle
6. Damage caused by aircraft
7. Volcanic eruption
8. Vandalism or malicious mischief
11. Falling objects
12. The weight of ice, snow, or sleet
13. Accidental discharge or overflow of water or steam from household appliances, plumbing, heating, air conditioning, or fire-protective sprinkler systems.
14. Sudden and unintentional burning, cracking or breaking of steam or water heating systems, an air conditioning or automatic fire-protective system.
15. Freezing of a plumbing, heating, automatic fire-protective sprinkler systems, air conditioning or household appliances.
16. Sudden and accidental damage from artificially generated electrical current.
What does renters insurance not cover:
Some damages will not be covered by renters insurance. Basic renters insurance policy won’t cover damage from the following:
● War or terrorism
● Nuclear hazard
● Damage due to your negligence
● Intentional destruction of your property by you.
● Governmental action, such as seizure of your property.
Renters insurance policy protects tenants personal property by providing liability insurance. Although the plan is mostly like homeowners insurance, there are some key differences such as:
● The renter’s insurance policy does not cover the dwelling or building structure, of the place where the tenant lives.
● This insurance policy is significantly less expensive than homeowners insurance.
Types of coverage in the renters’ insurance policy
Renters insurance typically provides financial protection by providing four basic types of coverage:
Personal Property Coverage
Personal property coverage is a fundamental component of renters insurance policy. It can help you cover the expenses of repair or replacement of your stuff if it is damaged or destroyed. A renters insurance company will cover the cost of the damage to your expensive belongings, such as kitchen gadgets, tools, computer, clothing, furniture, and electronic equipment, and other personal items, caused by fire, theft, wind, and vandalism, up to the limits in your policy. It doesn’t cover personal property loss over your coverage limit.
Benefits of personal property coverage
❖ Provides different levels of protection to suit your needs
❖ Provides a sense of security by covering the cost of damage
Personal Liability Coverage
Personal liability coverage protects by paying medical bills if someone is injured on your rented property because of the fault of you, member of your family or your pet. If the injured person files a lawsuit against you, then the personal liability coverage will help you cover legal defense costs up to the limit of your policy. It allows the injured person on the rented property to submit their medical bills directly to the insurance company instead of a lawsuit. It also provides coverage if you have accidentally damaged someone else’s property.
Benefits of personal liability coverage
❖ Protects financially against covered liability claims and lawsuits
❖ Protection against the harm caused by your children and pets to others
Additional Living Expenses (ALE) Coverage
Renters insurance usually includes coverage for other living expenses which provides financial protection in case if the house is damaged or become uninhabitable and you need to stay somewhere else due to any insured calamity. Additional living expenses (ALE) coverage or loss of use will help you pay for your temporary stay, hotel bills, restaurant bills, extra costs of groceries (because of being unable to cook at home) and other expenses while your home is repaired or rebuilt. Most policies compensate you the full difference between your additional living expenses and your ordinary living expenses.
Benefits of additional living expenses (ALE) coverage
❖ Pays for extra costs of temporary stay.
❖ Provide alleviation at the time of complete loss of hope and roof
Medical Payment Coverage
Medical payment coverage, in renters insurance policies, includes medical expenses to cover your guests. It provides financial protection against the unexpected and unfortunate incident. If a guest is injured while on your property, it will provide medical coverage by paying or help you to pay the hospital stay bills, dental treatment, surgery fees, x-rays, and other related charges. Your guest will be covered up to the policy’s limit, doesn’t matter that your negligence or any other reason cause the injury. This category extends completely to guests and doesn’t provide coverage to the people who are listed on the policy or living in the house.
Benefits of medical payment coverage
❖ Provides medical coverage for guests
❖ Provides mental peace and lightens pain and suffering and lost wages
How can you save money on renters insurance?
Renters insurance premium depends on many factors just like homeowners insurance policies, such as the state or area where you live, your deductible, your past claims, your insurance company and you need any additional coverage or not. The four common ways to save a significant amount on renters insurance are:
● Increase your deductible (the amount you pay)
● Buy your car insurance from the same company, called a “multiline” discount
● Ask for discounts for smoke and fire detectors, and security systems
● Pay the renters’ insurance bill in full rather than in installments
There is much optional coverage in renters insurance policy to strengthen their coverage. If the coverage you need is not available in your renters’ insurance, then you might need to buy a separate, additional insurance policy to ensure satisfaction. To receive timely compensation for your loss, you must document all the damaged items. File a claim and have more information. Don’t forget to ask for all risk coverage if you want to buy the best coverage.