Renters insurance is the kind of insurance that provides protection in the event of damage or loss to your personal belongings that are inside your rental home. Burglary of a dwelling’s contents is covered, though commonly not treasured valuables such as jewelry and pricey collectibles. It also covers damage from such incidents as burst pipes, fires and the like. By obtaining your own policy, you may have coverage for such things as wardrobe, electronics, art pieces, furniture and certain appliances.
The normal renters’ insurance plan will fill in the holes where the policy carried by the landlord is deficient for your individual needs. Many make the incorrect assumption that if they rent, the landlord’s coverage will protect them from loss in any situation- This is not so.
A renter’s policy is usually very competitively priced and is ideally suited for anyone renting their home but wishing for peace of mind in knowing their belongings are protected.
Some aspects of renter’s insurance are designed specifically for renting. For example, liability coverage will protect renters from damage that a landlord might hold them accountable for. A policy for “Actual Cash Value” coverage is less costly, but only, for example, would cover an appliance’s original value after depreciation, while “Full Replacement” coverage provides compensation for the full replacement of damaged property with an item of similar quality. Keep in mind that renter’s insurance does not cover damage caused by natural disasters, so other insurance would need to be purchases to enjoy this kind of protection, for example if the unit is in a region of high flood or tornado risk, there is separate coverage available.
A great plus for renters is the fact that they are not responsible for maintaining the property on which they dwell. This can, however, also be a negative in that it subjects renters to certain risks for which landlords aren’t liable. For example, landlords would not be responsible for the water damage caused by a burst pipe, only for the repair of the pipe. This can mean that a tenant is burdened with paying for a problem they did not have a hand in creating. Renters insurance will not pay out for instances of neglect that both the tenant and the landlord are aware of, so it is vital for renters to report dangerous conditions and to always have proof of having done so.
Renter’s insurance is quite the bargain- For a few dollars per month the renter is provided with the peace of mind in knowing that he or she is protected from many instances of loss. Keep in mind that all it takes is for one covered event to make the premiums paid seem a cheap in comparison to the coverage received.