Information on Renters’ Insurance
Introduction
Obtaining your own home for the first time is a big life event for most people. The renting of a home can mean so much and generally a good “move” for most. However, it is also important to keep in mind how you might fare financially should an accident or some incident happen that leads to loss while you inhabit your new dwelling. By buying good renters insurance, you can keep the contents of your home protected while potentially saving significant money over the long term.
Who needs Renter’s Insurance?
Renters insurance is distinguished from homeowners’ or car insurance in that renters 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 components but his or her coverage is hardly meant for your best interest. Should an accident, fire, (or person) destroy any of your personal belongings, then only renter’s insurance will pay you back for lost or damaged items.
You may be under the false impression that your things are not worth all that much, but you might be smart to ponder the total dollar amount it would take to replace all of it right now. Most renters certainly couldn’t find such an amount without breaking the bank and/or going into debt. Also, and quite vitally, a renter’s insurance policy can give coverage to you if someone were to hurt themselves while inside your place and sue. Keep in mind that this coverage is so important some landlords may require that you carry it. In addition to it covering you in the case of an injured party filing a legal dispute against you, it can pay for your legal fees, up to the limits of the policy. And good renters insurance can also provide for living costs in case your rental home is rendered unlivable due to covered claim.
What Is Covered
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 events will usually need to be covered by separate policies and, depending on where you live, these additional coverage options could be important.
How it Operates
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 need 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 kicks in. Generally, the larger the deductible, the lower the premiums are.
The benefits
The major plus of a good renter’s insurance policy is the financial protection in the event of some loss. An additional plus is that renter’s coverage is relatively affordable, yet very effective when put into effect.