When you purchase insurance, you hope it will save you in a time of need. You typically pay a premium every month to have insurance. So you really hope that it will be worth it when you need to use it. It is important to understand your insurance policy to to know what it will cover and what it will not cover. There are some situations that are not covered by renters insurance.
Natural Disasters not Covered by Renters Insurance
Renters insurance policies usually do not cover natural disasters. For example, if a flood or an earthquake damage your personal property, a renters insurance policy most likely will not compensate you for lost or damaged belongings. If you live in an area prone to natural disasters, you may be able to purchase a separate policy that could cover you in specific natural disaster-type situations such as earthquakes in California.
Bed Bugs or Roommate Possessions not Covered by Renters Insurance
If bed bugs or rodents damage your personal property, your renters insurance policy will likely not help you. Many insurance companies see bug infestation as a maintenance situation which is why you would likely not have any coverage in these cases. Additionally, your renters insurance policy will not cover your roommate’s possessions. Because your name is associated with your policy, coverage applies to your possessions.
Car Theft or Damage not Covered by Renters Insurance
You cannot expect your renters insurance policy to protect you when there is theft or damage to your car. It is your automobile insurance policy that protects you in these instances. Renters insurance may cover you if one of your possessions is stolen from within the vehicle.
As you look to purchase a renters insurance policy, be sure to ask questions about what your policy covers. By knowing what it will not cover, you will reduce unexpected surprises when you are in a time of need.
Renters insurance generally covers the persons listed on the policy and may include those related to the named persons. Insurance is state specific. So it is important to check with a licensed agent in your area who can guide you on the best approach for renters insurance if you are in a roommate situation. So when you ask, “does renters insurance cover my roommate?”, it will probably come down to whether or not his/her name is on the policy.
Renters insurance has coverage limits. These limits are shared among those listed on the policy. To maximize coverage for your personal belongings, licensed insurance agents may recommend a policy only in your name even if you can list your roommate’s name on your policy.
Another benefit of only listing your name on the policy is related to a claims history. If you share a policy with a roommate, and your roommate files a claim, there is a chance that claim will be part of your insurance history. Claims on your insurance record may affect future premiums.
Renters insurance may or may not cover your roommate. In many cases, if your roommate’s name is not on the policy, then he/she will not be covered. Ask your licensed insurance agent about the pros and cons when adding or excluding your roommate from the policy.
Somewhat similar to homeowners insurance, renters insurance is for people who rent or lease a home. They do not own the property in which they live. Renters insurance is meant to cover losses of personal property and protect the renter from liability claims. So what does renters insurance cover? There are three primary components of renters insurance: Personal property, liability, and additional living expenses.
Personal property are the tenant’s belongings. It is things that the tenant owns. For example, furniture, clothing, and electronics are personal property. If personal property is damaged in a covered event, then renters insurance will cover the cost to replace or repair belongings. Coverage is provided up to the policy limit. For example, if a pipe bursts in an apartment, and the water damages the furniture, then renters insurance can help with the cost to replace or repair the damaged furniture.
The definition of liability is to be responsible for something. If the tenant damages the rental property or a tenant’s guest injures him or herself, then the renters insurance policy will pay for the damages or guest medical bills up to the policy limit. For example, if a tenant’s guest trips over the laundry basket while visiting the tenant, the insurance policy can help pay for the guest’s medical bills.
Additional Living Expenses
Insurance can be a lifeline when the unexpected happens. If something happens to the rental unit making it uninhabitable, tenants with renters insurance have relief. Their policy will cover the cost of living expenses during the time the tenant cannot live in the rental unit. For example, if there is water damage to the apartment, the tenant may have to temporarily relocate. Renters insurance can help pay for a hotel while the apartment is under repair.
When someone asks, “how much is renters insurance?” the straightforward answer is “it depends“. Compared to other types of coverage, especially medical and automobile, renters insurance is not terribly expensive. Today, the average cost is around $15 to $20 a month. There are many factors that affect the cost. And these factors are both in and out of the tenant’s control.
The state and location in which the tenant lives: Areas prone to have higher natural disasters or crime rates will play a role in the cost.
Coverage amounts: In the event personal property gets damaged or stolen, tenants will want to have a policy to cover the cost to replace or repair the items. So the amount of and value placed on personal belongings will affect how much is quoted for the premium.
Deductible amount: The higher the deductible, the lower the cost.
Claims history: Having filed a previous claim within a certain period of time may affect what tenants pay. Every insurer has their own calculation, so it is good practice to compare quotes if possible.
Every tenant’s situation is different and every insurance provider has its own calculation. These various factors affect the cost. Overall, renters insurance is relatively inexpensive and can provide a great deal of peace of mind.
Landlords take steps to protect their property. The insurance policy on the rental property generally covers the building itself. It is renters insurance that can protect the tenant’s belongings and provide liability coverage for covered events related to injury or property damage. Because of the additional protection for landlords and tenants, landlords should require renters insurance.
Landlords Should Require Renters Insurance to Reduce Liability
If there is damage to your property that affects the tenant’s belongings (also known as personal property), renters insurance will help cover the cost of replacing the tenant’s property. Tenants may feel that you should cover this cost. It is renters insurance that would help the tenant.
Additionally, if a tenant has a friend visiting, and the friend gets injured, medical claims could be filed against the landlord. If the tenant has renters insurance, it is this coverage that could be used for the guest’s medical expenses. There are benefits to both tenants and landlords.
Renters Insurance can Reduce Responsibility
If there is damage to your rental property that makes the unit uninhabitable, the tenant may feel that it is your responsibility to find them temporary housing. Renters insurance will cover the cost of temporary housing. This is one less concern for you to deal with. Instead, you can focus on repairing the rental unit so your tenant can return as quickly as possible.
For landlords, additional protection for rental property is not a bad idea. Renters insurance is beneficial to both landlords and tenants. It is a good idea that landlords should require renters insurance for their tenants thus providing peace of mind.
Simply put, tenants should have renters insurance because it provides peace of mind when the unexpected happens. It reduces the financial impact of unexpected and sudden events. Tenants pay for renters insurance. The good news is that renters insurance is inexpensive. The average monthly premium is $14 or $168/year.
A renters insurance policy covers the tenant’s personal belongings in cases of damage or theft. When purchasing a policy, tenants estimate the value of their personal belongings. The coverage amount will determine how much to compensate the tenant when their belongings become stolen or damaged in a covered event.
Renters insurance also provides liability protection in situations where a guest at the rental property becomes injured. For example, if the tenant’s friend trips over the laundry basket, then renters insurance may cover the friend’s medical expenses. In these unexpected cases, it is a good idea to have renters insurance.
If the rental unit becomes uninhabitable due to property damage, then renters insurance can cover the cost for temporary housing. For example, if a pipe bursts and the rental unit is flooded, then renters insurance may cover the cost of a hotel while the unit is being repaired.
Renters insurance is a type of insurance that can cover the policyholder’s physical belongings, liabilities, and certain living expenses for covered events. Policyholders are tenants who are renting or subletting rental property including single family homes, apartments, condos, etc.. It can protect tenants in cases of unexpected events like theft, injury, and property damage. Most renters insurance policies cover three primary areas:
Personal property covers the cost to repair or replace the things you own when you have an unexpected event like theft or damage. Your policy will help pay for the cost to repair or replace your belongings up to your policy limit. Most personal property coverage is subject to a deductible. You will have to pay up to your deductible before the insurance company covers any loss. When you purchase renters insurance, you determine your policy limit based on the value you place on your stuff. Your belongings include things like clothing, furniture, and electronics.
Liability is coverage that will protect you when you are at fault for guest injury or property damage. For example, if your guest trips and falls over a cord you have placed on the floor, you may be held responsible for your guest’s medical bills. Liability coverage can help you pay for those bills. Liability coverage is subject to limits that determine the maximum the insurance company will pay for a covered event.
If your rented home is damaged then this coverage can help pay for your living expenses while your home is uninhabitable. Renters insurance will cover expenses like hotel bills.
You do not expect there to be problems when you are a tenant. Renters insurance is one way to provide some peace of mind to to help you during these unexpected events.
Welcome! We are thrilled to introduce you to The Renters Insurance Blog. Our goal is to provide helpful information for landlords and tenants about this type of coverage.
There are many different types of insurance and they can all vary in terms of cost and coverage. For example, two of the more popular ones are automobile and medical insurance. Renters insurance may not be as popular as auto or medical insurance, however, it is still important coverage to have. Similar to other types of insurance, insurance companies design renters insurance to reduce risk that tenants and landlords may face due to property damage. We cannot predict the future and know if we will incur damage. We certainly do not hope for it. But if it should happen, there can be peace of mind if there is renters insurance. We will explore different topics related to this insurance and provide as much helpful information as possible.
Stay tuned as we add to our blog. In the mean time, if you search the Web for this type of coverage, you will find a lot of different insurance companies offering this type of coverage.