Want to protect yourself from potential losses during your tenancy period? Learn more about the different types of coverage renters insurance offers.
Renters insurance is a novel concept that not many are aware of and is in the nascent stage in its development. Wondering what this coverage is all about? How can it protect you and your belongings during your rental period at a particular property? It is sure a temporary arrangement and will automatically cease once the rental agreement comes to an end. So, is it worth taking up rental insurance for your temporary accommodation? This article will help answers all your queries on renter’s insurance and also give you a detailed insight into what are the risks this insurance policy covers. Let’s start with the definition of Renters Insurance.
What is Renters Insurance?
This type of insurance provides coverage against certain covered losses to protect the tenant and his/her belongings during their stay at the rented accommodation. Different kinds of coverages aim at protecting you (renter), your personal belongings, and alternate living arrangements in the event of unexpected events that are covered for. Hence these events are called covered perils. Events such as burglary, break-in, guest injuries are the frequent unforeseen events that are included in these policies.
Why do you need to consider renters insurance?
A landlord might already have his home insured against any unforeseen events such as fire, burglary, etc. So, what is the importance of a renter’s insurance? The landlord would have typically insured his building and the fixtures that are already present in the home. Your belongings, such as furniture, your electronic goods such as TV, refrigerator, stereo systems, computer, etc. are not mainly covered by his insurance. In the event of something unexpected happening, you will not be covered for the losses. Hence it is essential to insure your personal belongings and yourself against these losses as the replacing costs of your stuff are sure to cause a dent on your savings or income.
Types of Renters Insurance.
Based on the type of losses or expenses the policy covers, these contracts are broadly classified into three major categories.
- Coverage for personal belongings – This type of policy cover losses to your personal belongings during your stay at the rented accommodation. It would help you replace or recover your valuables if it was destroyed due to an unforeseen event. You can take coverage all y our belongings no matter how small or big, including your clothing, utensils, curtains, etc.
- Liability Insurance – This is to cover the costs you might incur in case you destroyed or damaged the property accidentally. If you also happen to cause any injuries to your guests at the time of their stay at the rented property.
- Alternate Living Arrangements – This type of policy covers the costs that you are likely to incur in case your rented accommodation becomes unlivable because of damages caused by fire or theft.
How does this insurance arrangement work?
This is one affordable and easy way of getting your personal property insured to limit your liability to cover yourself in case something undesirable happens. You need to take some simple steps mentioned below and get the satisfaction of being covered.
Make a list of all the inventory or personal stuff you have at your rented home. It can be anything starting from your expensive jewelry, electronic gadgets to your daily use utensils in the kitchen.
Decide on how the coverage limits – This can be done after comparing limits each policy offers and zero in on the right one based on your needs.
Meet your insurance agent, or you could also pick a policy from various online platforms. A word of advice while shopping for plans online is to be aware of fake insurance providers who mainly intend to siphon your money or steal your financial and personal data.
Check with your agent if you can qualify for discounts if you bundle it up with other types of insurance, such as automobile insurance.
In case of any untoward incident happening, the insurance company will compensate for the losses to the extent of the limit agreed upon.
What does all my tenant insurance cover?
As mentioned in the types of renter’s insurance, this arrangement will provide coverage for all your personal belongings in case of fire, theft, vandalism at your rented property. It also covers any legal liability to the third party at the time of lodging at your rented property. This is usually if you are held responsible for hurting anybody while they are at your home. It can cover even the medical expenses of the injured guest. You could also avail coverage for your temporary living arrangements in case of damage to your existing rented accommodation.
Most of us view it as a wasteful expense. However, it can be a lifesaver by saving yours from the financial burden of replacing your personal belongings.
References:
- https://www.businessinsider.in/personal-finance/what-is-renters-insurance-and-why-do-you-need-it/articleshow/71159241.cms
- https://themuse.ca/renters-insurance-what-you-need-to-know-and-why-you-should-look-into-it/