How Renters’ Insurance Helps
The renting of a home is as important, if not more so, than many other experiences in life. It is also important to keep in mind how you might fare financially should an accident or some incident occur that leads to loss while you live in your new dwelling. In buying good renters insurance, you can keep the contents of your home protected and potentially save significant money over the long term.
Renters insurance is distinguished from homeowners’ or car insurance in that renter’s insurance only covers personal belongings within the walls of your rented dwelling. (The landlord usually will have a policy that covers the actual structure and other parts of the property, but his or her coverage is meant for their best interest. Should an accident, fire, (or a person) destroy any of your personal belongings, only renter’s insurance will compensate you for lost or damaged items.
You may be under the false impression that your things are not worth all that much, but you would be wise to ponder the total dollar amount it would take to replace all of it right now. Most renters certainly couldn’t obtain such an amount without breaking the bank and/or going into debt. Also, and quite crucially, a renter’s insurance policy can give coverage to you if visitors ever injure themselves while inside your place and then sue. Keep in mind that this coverage is so important some landlords may mandate that you carry it. In addition to it covering you in the case of an injured party filing a legal claim against you, it can pay for your legal fees, up to the limits of the policy, as well. And good renter’s insurance can also provide for living expenses in case your rental home is rendered uninhabitable due to a covered claim.
Kinds of Coverage
Normally a renter’s policy will cover losses resulting from such things as fire, theft, vandalism, a leaky pipe, and severe weather events. However, this policy like others, will likely exclude such natural disasters as floods, hurricanes, or earthquakes. These perils will usually need to be covered by separate policies and, depending on where you reside, these additional coverage options can be important.
How it Works
Renter’s coverage is for those who live in a dwelling that they do not own. If you own property that you rent out, the coverage you need is a landlord policy, not a renter’s policy. If you ever wish to file a claim, you first have to pay a deductible. The deductible on your policy is the amount you must first pay before your insurance plan contributes funds. Generally, the larger the deductible, the lower the premiums are.
The major benefit of a good renter’s insurance policy is the financial protection in the event of some covered loss. An additional plus is that renter’s coverage is relatively inexpensive yet very effective when needed.