People with their own homes generally have a homeowners insurance policy to protect their property. However, the situation is distinct for renters. Many have a notion that having a homeowners policy also keeps them covered. But this is not the case. There is a separate renters insurance coverage that every renter must have when they are taking a property on rent.
What Is Renters Insurance?
Renter insurance coverage protects tenants from expenses of unexpected legal liability, theft, and personal property damage. You can purchase this policy when renting an apartment, home, condo, or any other living space. Interestingly, renters insurance is cheaper than a homeowners insurance policy.
What Does Renters Insurance Cover?
Renter insurance coverage can be obtained in the following areas:
- Personal liability – If you damage someone’s property unintentionally or injure someone by mistake and be sued, your renter insurance policy covers the liability expenses, including legal costs. A standard policy offers up to $100,000 in liability coverage.
- Medical payments – The policy offers limited coverage for medical expenses when someone is injured on your property.
- Personal property damage – In case of property damage, renters insurance covers the expenses of the damage up to the limits of the policy. The policy generally mentions the causes of damages that will be covered.
- Additional living expenses – If the rental property becomes uninhabitable and needs repair and restoration, the renter insurance coverage bears the expenses for living. This is often referred to as loss of use coverage.
Some other coverages offered by the renter insurance, including building alterations or additions, food spoilage, credit card and check forgery, debris removal, etc.
What Does Renters Insurance Not Cover?
There are many areas where renter insurance coverage cannot be obtained.
- Damage caused by flood or earthquake – If the rented property is damaged by flood or earthquake, the renters insurance will not offer coverage.
- Pests and bed bugs – Most renter insurance policies don’t cover expenses related to pests and bed bugs in the house, with limited exceptions.
- Roommate property – Your renter insurance policy will cover your belongings only. If you have a roommate, you must include their name in the policy to get coverage.
- The car damage or theft – A renters policy does not cover theft or damage to your vehicle. However, any belongings you have inside the car during the time of the theft will be covered.
How Do Renter Insurance Companies Pay Out Claims?
A renter has to file a claim to receive the renter insurance coverage. To make a claim, you must first inventory things with their purchase date, value, and other important information. Next, document the damage properly for the claim with relevant evidence. Once done, file the claim with the necessary paperwork and documentation and receive the coverage.
Looking for the Best Insurance Policy? Contact Udell Family Insurance!
Your search for the best renter insurance policy ends with Udell Family Insurance. We offer various kinds of personal insurance policies, life and health policies, and commercial and business insurance policies. Contact us to get started with it.