Many find out the hard way how important it is to have a renter’s insurance policy. Although many think that damage to personal property or possessions is covered by a landlord’s insurance, this is not entirely true.
Your landlords’ insurance will cover damage to the structure of the property. However, their policy will not cover the costs to replace your personal items. Individual renter’s insurance generally covers personal items that are lost due to fire, wind, theft, vandalism and, in some instances, water damage. In addition, if your home is uninhabitable due to damages, renter’s insurance will pay for your temporary living expenses until you are able to move back in.
Some policies also offer liability insurance, which covers you if a visitor is injured in your home. For instance, if someone trips and is seriously hurt, you could be found responsible for the accident. Your renter’s insurance liability coverage can help pay for your legal expenses, as well as their medical bills and other damages.
When choosing the right amount and type of coverage you need, creating a thorough home inventory will help to determine the terms of your policy. Additionally, a detailed inventory will come in handy if you ever need to submit a claim and describe the items that were destroyed.
Additional Types of Renter’s Insurance:
Full replacement cost coverage: Standard insurance policies only pay you the actual cash value of your loss – the price you paid minus depreciation. Replacement cost coverage compensates you for what it actually costs to replace damaged items, even if it is more than you originally paid.
Personal property endorsement: Standard insurance policies limit the amount they will pay out for specific items, like jewelry, artwork, and other collectibles. This is when having additional coverage such as through a personal property endorsement may be beneficial.
More than half of renters without a policy believe they cannot afford renter’s insurance. However, according to the National Association of Insurance Commissioners, the average cost of a renter’s insurance policy is about $15 per month and can cost even less if bundled with other policies.
If you have questions about renter’s insurance, or would like to discuss adding this type of coverage, call Soucy Insurance today at 762.2218.