Let’s say that you are living in an apartment. You don’t own the apartment building, so you are a tenant (renter). Now let’s say that a fire destroys the complex, and you lose all of your belongings. Can you file an insurance claim to recover from the loss? No, unless you have renters insurance.
We will break down renters insurance policies to figure out what it is, and what it covers:
What Is Renters Insurance?
It’s an insurance policy that covers your belongings and provides other benefits that we will talk about shortly. Some may also call it a “content policy”, as it is designed to insure the contents of a dwelling.If you are living in a condominium or apartment building that you do not own, you may want to consider this type of insurance.
If a fire, storm of other disaster that is covered occurs, this will help you to purchase those lost items that you need. It can also reimburse you if those items are stolen. In fact, it may also cover the loss of those items even if they are not at your apartment. For instance, if you take your expensive phone on a trip, and the phone is covered in your policy. If someone steals your phone, you could file a claim.
Is There A Deductible?
Yes, of course there is a deductible. The amount of the deductible will depend on the policy that you have. Bear in mind that the lower your deductible is, the more that the policy will likely cost you.If you want really cheap renters insurance, you may want to get a higher deductible.
What If I Am Renting A Home Or Trailer?
Yes, home renters insurance works just the same. While we mostly think about this type of policy for an apartment or condo, you can also get it if you are renting a house or trailer. The key is that you don’t own the dwelling. The owner will have a policy that covers the dwelling (home, apartment building, condo, trailer, etc.), but his policy will only pay for the building itself. That home owners policy will not cover damages to the contents that you own. So, if you are renting a house or trailer, this is something to at least consider!
How Much Will It Cost Me?
Unfortunately, you need to check around to get an average rate. Renters insurance rates just vary widely depending upon the company that you buy the policy from, where you live, what type of coverage you get, and the policy details. To figure out how much this is going to cost you just call several insurers and ask for a renter insurance quote, or you can also request a quote online from many of them. Remember that they will likely run your credit as well, and this could factor into the final price and maybe even your eligibility to get it.
Does It Provide Personal Property Coverage?
Yes, this is the main reason to get it! The primary function of a rental insurance policy is to cover your lost or damaged belongings. If a defined peril (storm, fire, theft, etc.) happens, and you property is damaged, stolen or destroyed, you can file a claim for those damages. The amount that you can claim will be limited by the amount of personal property coverage that you have. Keep in mind that having a high policy limit is great, but it will cost you more. To get the cheapest rate, you would want a relatively low coverage amount.
Does It Provide Liability Coverage?
Yes, it does help with liability issues. Let’s say that you invite a friend over for dinner. Let’s say that your friend trips on a table and fractures his skull. That friend is probably going to sue you. This rental insurance will help to defend you in court, pay any damages, and even pay your friend’s medical bills. Believe it or not, this happens all of the time!
What About Living Expenses During An Emergency?
Let’s say that you are living in an apartment and you were smart enough to buy a policy. Now let’s say that the entire complex gets flooded due to broken water pipes. Your landlord tells you that you need to leave for a month so that they can fix everything. If you bought a renters policy, you’re in luck! Part of the coverage is to pay for your temporary living expenses during times like this. You can live in a hotel for the next month, knowing that the bill will be covered by your policy.
Should I Buy Renters Insurance?
Yes, you should.