Home insurance isn’t just for people who own their homes. It’s equally important for people who rent houses, apartments, and condominiums to have insurance coverage. That’s why most insurance companies offer what is known as renter’s insurance policies.
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One of the benefits of renting is the fact that your landlord, as the homeowner, is responsible for general maintenance and issues that arise with regard to the property. But there are some things that your landlord is not responsible for, and that’s where renters insurance comes in handy.
Renters insurance policies cover certain perils that make living in and caring for a rented property easier for both the renter and the landlord.
The main person who benefits from the renter’s insurance, however, is definitely the renter. So if you rent a property or unit, keep reading: a little renters insurance can go a long way to protect you against major financial loss and a whole lot of hassle.
Renters insurance generally covers everything that homeowners insurance does. The difference, however, is that renters insurance does not cover damage to the home itself, as you are not the owner.
That said, there are three main areas of coverage:
There are two types of renters policies with regards to your possessions:
These are the three areas of coverage offered in your typical renters insurance policy. It is worth noting that you are able to purchase an endorsement to extend your coverage if you feel you need more.
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That depends. Some rental properties require proof of renters insurance before you can occupy the building or unit. Even if renters insurance is not necessary, it still may be a good idea to have renters insurance, for your own personal safety and peace of mind.
Depending on how much coverage you require, the price of your renters insurance will vary. Generally speaking, most policies in the United States are around $20 or less per month, which is pretty affordable. A lot of insurance companies offer renters insurance as bundles meaning you can reduce your rates by combining your renters insurance with other policies. For example, with your car insurance.
The more valuable the assets you are protecting in your insurance, the higher the price will be. There is plenty of flexibility in renters insurance rates, caps, and deductibles. It’s worthwhile speaking to your insurance provider to gain an understanding of what your needs are and the best policy to match them.
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There are five easy steps to getting renters insurance:
Even if you aren’t required to have renters insurance by your landlord, home renters insurance can protect you against serious financial hardship. At the very least, home renters insurance is worth considering, so get a quote to get started.
If you rent your residence vs purchase it, you are a candidate for a renters insurance policy. Your landlords insurance policy likely won’t cover your personal property from damage or theft unless it is caused by a loss that your landlords policy is covering. Even then there may be exclusions.
Typically a renters policy won’t cover damage to your actual rented residence, water damage caused by flooding or underground water, or damage from earthquakes or other earth movements
Yes, they are different in that a Landlord’s insurance policy will cover his/her building(s) resulting from a covered loss. Your Landlord’s policy will likely not cover your personal items
Likely renters insurance will not cover damages to your personal property resulting from a flood. However, all companies and policies vary so be sure to ask your agent.
A renters insurance policy will cover your personal property due to damage or theft and use either a Replacement Cost or Actual Cash Value method to determine value. Each policy and company is different so please ask your agent for more details.
The amount of coverage that you need depends on the value of your possessions and your net worth. The higher those numbers, the more coverage that you will need and vice versa. Speaking with your insurance provider can help provide clarity on this.
