The Basics of Renters Insurance

What Is Renters Insurance?

With renters insurance, you can protect your personal belongings in case of damage due to unforeseeable circumstances. Renters insurance is a vital financial tool that covers your personal belongings at an affordable renters insurance cost. You can either customize your insurance policy as per your requirements or chose one offered by the executive.

Top 5 Reasons Why You Need A Renters Insurance

The landlord usually has insurance that covers the property against any unforeseeable circumstances. However, in the same circumstances, you might lose your personal belongings and undergo a considerable loss.

Your renters insurance covers the loss of personal assets like furniture, laptop, clothing, etc. Similarly, if your car gets stolen, you can claim the insurance on the assets kept in the car while it was stolen, but not on the car.

Here are 5 ways how renters insurance covers you-

Personal property

This is the gross value of your personal belongings. It majorly includes your furniture, clothing, electronics, and other regular properties. However, expensive items like jewelry, a camera, a bicycle, etc., are not included in this insurance unless listed. If you want insurance for your expensive items, talk to your insurance firm about the policy that covers the listed items as well.

Liabilities

These include the bills that you are responsible for due to the damage that happens on your property.

Lack of functional property

This is applicable in case of an accident when the property becomes unliveable and can’t be used anymore. This is the maximum living expense you can claim as reimbursement.

Medical payments

If some guest or neighbor gets injured on your property, this is the maximum amount you can claim for their treatment as the medical expense.

Deductible amount

Once you have paid the necessary deductible amount for the damage or repair, the insurance company will cover the remaining amount.

4 Easy Steps To Get Your Renters Insurance?

Unlike other insurance firms with complex paperwork, you must select a firm that makes the insurance process easy and understandable.

Here are the basic 4 steps for the renters insurance application process-

1. Calculate the property value – Evaluate the value of your personal belongings against which you need the insurance. In case of expensive items, consult with the provider as these might need a separate listing.
2. Check your agreement– Your landlord might have the minimum liability requirement for the renters insurance. Check your agreement before you buy the insurance.
3. Choose your deductible wisely– Deductible is the first payment that you will need to make from your end. It is only after this, the insurance firm will cover the further amount if your insurance is approved. The higher the deductible, the lower will be the premium payment.
4. Covering multiple people with a policy– You can add your landlord to your policy so that they could be informed when the policy is expired. Your spouse is often covered in the insurance as well, provided you are adding the necessary details.

What Is Not Covered In Renters Insurance?

While getting insurance, you must figure out what is getting covered by your renters insurance. For this, you must go through all the paperwork carefully.

Your renters insurance typically needs additional coverage if you live in areas with high geographical changes prone to perils like earthquake and flood damage. In such cases, it is advised to contact your insurance executive so that he can offer you insurance against the damage due to these perils.

Similarly, many insurance policies also do not cover the damage done by pets. It is advised to check in with your insurance firm for the pet cover or buy pet insurance to be on the safer side.

Also, your insurance is not likely to cover the damage due to termites, rodents, and other pests infestation. Read the insurance policies clearly before you settle on the insurance policy.