Homeowners with mortgages are required to carry homeowner’s insurance. While renters may not have that requirement, their personal belongings may be damaged due to events beyond their control. Here is where insurance for renters come in handy.
Renter’s insurance is a policy that offers coverage to individuals that rent rather than own their home. If a tenant’s possessions are damaged from fire, vandalism or theft, it can be replaced with renters insurance. Insurance for renters also offers liability coverage in case someone visiting is hurt on the property.
Rent insurance is very affordable and, depending on the policy, may be purchased for under $200 per year. Once you file a claim, you pay a deductible, and the insurance company pays the rest to either replace or repair whatever was lost. The amount they pay depends on the policy. Renters insurance, depending on the company, can offer various types of coverage.
• Personal property coverage safeguards your personal belongings if they are damaged or stolen.
• Additional living expense coverage will pay you to live elsewhere while your rented home is being repaired or replaced, and potentially cover the cost of food as well.
• Liability coverage protects you from being sued if someone is injured while in your home or on the property.
• Guest medical coverage will pay medical bills for guests who were injured while on the property.
• Additional coverage or riders are offered for particular belongings that have a high value such as jewelry, guns and special collections.
• Some policies even provide coverage for unauthorized use of your credit cards.
Typically, landlords provide coverage on the actual property or structure but not on your personal belongings. Although you may think you don’t own much or nothing of much value, it’s always surprising at how much it would cost to replace assets without rent insurance.
You can’t always be home protecting your belongings, and the benefit of rent insurance is to gives you the assurance should the unthinkable happen.