Renters’ Insurance
Often, renters and apartment dwellers are taken aback when they learn they are expected to carry renters’ insurance. However, this is an essential aspect of being a smart, successful and reliable tenant.
Most landlords will bring up renters’ insurance when they interview and screen applicants, but not always. That’s why renters have to be wise enough to take it upon themselves to gather all the facts they need about insurance coverage and protection.
What Is Renters’ Insurance?
One of the biggest questions among tenants and would-be tenants is what renters’ insurance is and what it explicitly covers.
Like any type of insurance policy, a renters’ insurance policy safeguards the renter from manmade and natural disasters. For example, if the person in the apartment upstairs decides to run the bathtub for hours and the water destroys your living room furniture, you will contact your renters’ insurance to get reimbursement for your damaged items.
A huge misconception is that your landlord’s home insurance policy will cover you and your belongings. This is not the case. The landlord’s policy governs the landlord’s belongings and the structure, but you and your property have to be protected with a different policy.
Getting renters’ insurance is as simple as contacting an independent insurance agent. Just let the agent know what type of dwelling you’ll be renting and what you need to cover. Then, he or she can discuss options with you.
Common Renters’ Insurance Exclusions
Just because you have renters’ insurance doesn’t guarantee you will be reimbursed for any problems. For instance, most renters’ insurance policies do not cover insect infestations such as a hornet’s nest or bed bugs. You can add riders to your policy to more comprehensively provide protection.
Getting a Place to Stay When Disaster Strikes
Your rental property was damaged due to fire and smoke. Where can you go? Just turn to your renters’ insurance, which usually has a provision if you have to stay elsewhere, such as a hotel, if your rental is uninhabitable. It’s a huge relief knowing you can comfortably and affordably live in a clean place while your rental is being rehabbed.
How Much Does Renters’ Insurance Cost?
Renters’ insurance policies vary in cost, but most are quite affordable. In fact, many tenants are pleasantly surprised to learn that their renters’ insurance costs are much lower than they assumed. Be sure to set limits to keep costs down.
You can also opt for a higher deductible to lower your premiums. If that’s the case, you won’t be able to make any claims until you have met your deductible amount, so if you do have to pay out-of-pocket, keep good documentation of how much you spent.
Starting a Renters’ Insurance Claim
Should you need to rely on your renters’ insurance policy for any type of damage to you or your properties, you will need to file a claim. To learn more about the claims process or to get or update a renters’ insurance policy, contact an independent insurance agent in your local area to get personalized service and a policy that fits your lifestyle.
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