Renters Insurance, which can be translated as renter’s insurance, is for those who live on rent and own property. Is it your case? So keep reading to better understand this type of coverage.
It is similar to Apartment Insurance , in that it insures a specific part of the building, the part of your property, that you have struggled to acquire, and nothing else.
This insurance usually covers, in a simplified way, three things:
- You and your family;
- Your belongings;
- Your home.
Ah, but doesn’t the apartment owner already have insurance? Yes, there is, but homeowner insurance only covers the structure of the property, all the stuffing, it’s your responsibility.
For example, if a fire breaks out in your kitchen, your landlord’s homeowner insurance covers damage to the floor and ceiling of the apartment, but does not cover your appliances.
Or if a pipe bursts and the entire room gets wet, homeowners insurance covers plumbing repairs and painting the walls, but it won’t cover your laptop and smart tv that were underwater.
Even more seriously, if part of the roof falls off at the foot of a visitor, homeowners insurance covers the roof repair, but will not cover the costs if that person decides to sue you.
How it works?
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When taking out renter insurance, you have two reimbursement options:
- Actual cash value: the insurer will reimburse the value of the items at the time of damage, considering depreciation by time and by use.
- Replacement cost : will refund the amount needed to purchase other items to replace lost or damaged items.
What does Renters Insurance cover?
Renter insurance policies typically have three main coverages:
- Personal Liability – Personal Responsibility
- Personal Property – Personal Assets
- Additional Living expenses – additional living expenses
Personal Liability:
As we talked about in the example at the beginning, you can be held responsible for any injuries from someone inside your home.
If someone breaks an arm because they slipped in a puddle of drink spilled on the floor, they can take you to court so you can compensate them for their medical expenses.
This coverage covers the costs of the process up to the insured amount, think that without insurance, this cost will come directly out of your pocket and in cash.
Personal Property:
This type of coverage helps to recover the cost of lost or damaged items in many different scenarios.
Standard policies cover named hazards including fire, vandalism and theft.
Theft and damage outside the home may also be covered. If your cell phone was stolen on the street or your wallet was stolen while traveling abroad, your personal property coverage has you covered! 😉
Additional Living Expenses:
Let’s say there was a short start in your toaster and a fire starts and you are forced out of your apartment. You might need a hotel. This is something most renters insurance policies cover.
Some even cover extra money you’ll spend on food, laundry, and transportation because of this sudden change.
What are the named events in Renters Insurance coverage ?
Here we list 16 events:
- Fire or lightning.
- Wind storm or hail.
- Explosion.
- Riot or civil commotion
- Aircraft damage.
- Vehicle damage.
- Smoke.
- Vandalism or malicious damage.
- Theft.
- Volcanic eruption.
- A falling object.
- The weight of ice, snow or hail.
- Accidental discharge of water or steam from certain home systems or appliances.
- Sudden and accidental destruction, cracking, burning or bulging of certain household systems.
- Freezing of certain systems or household appliances.
- Certain sudden and accidental damage caused by artificially generated electrical currents.
What does Renters Insurance not cover?
Before taking out your insurance, it is very important to know, in addition to what is covered, what insurers do not include in standard coverage and thus, not run the risk of having any item unprotected.
Renters insurance does not usually cover:
Valuables :
Very valuable belongings like jewelry, antiques, collectibles may need additional coverage.
Home Business:
If you run a business from your home, it’s best to have specific insurance for these items. Machines, computers and documents belonging to the company are not insured by renters insurance.
Motor vehicles:
Even though it is your property, the motor vehicle is not insured even if it is parked in your home garage. Cars, motorcycles, boats, jet skis require specific coverage.
However, your belongings inside the car are usually covered, even if they are stolen from inside the car while you are on the street.
Unregistered Items:
If you cannot prove ownership of an item or its value, you will not receive a refund. So always keep receipts and take pictures of your belongings… Just in case.
Your housemate’s stuff:
Your insurance will only cover your belongings and the belongings of people who are related to you by blood, marriage or adoption. That is, not even the things of your boyfriend (who lives with you) are insured in this situation.
Talk to him to come and talk to us so he can have his own penthouse! Enjoy and share this article so you don’t have doubts!
Natural disasters:
Floods , erosions and earthquakes are rarely covered by general policies. If you are living in a place where these phenomena are likely to occur, ask for an additional policy.
Property damage and situations caused by this repair:
That’s with homeowners insurance. Check with your landlord to see if their insurance is really suitable for the building or region where the property is located.
And if any repairs are needed that do not allow you to stay in the house for a period, it is also the owner’s coverage that will reimburse the costs of accommodation, transport and even food if the need is identified.
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Who is covered by Renters insurance?
Most policies automatically cover all the residents of your household who are related to you by marriage, consanguinity or adoption.
It’s important to tell the insurer who they are and include everyone’s names on your policy.
Do I need Renters Insurance?
Well, as we said at the beginning of the text, if you have rented a property and have belongings inside that property, the answer is yes!
Unless your belongings are 2 cups of curd, a battery-operated radio and those sneakers that have been with you since 2005, Renters Insurance will be a good investment.
The value is very affordable, it is easily diluted in the monthly bills, and yet it guarantees your peace of mind… and in the event of a mishap, you will not be left in trouble.
