Renters Insurance Policy Important Item to Remember
One of the most important items to jot down when you are considering renting a property is do you have the proper amount of renters insurance or do you even have a policy to begin with?
Keep in mind that renters are faced with the same risks as homeowners should there be a disaster that hits their place of residence.
When searching for information on a renters’ insurance policy, the most important factor to remember is that while your landlord or condo association might have insurance that coverage only protects the building, not your possessions inside.
For those looking for a renters insurance policy, there are a number of residential insurance policies. The HO-4 policy is set up for renters, while the HO-6 policy is slated for condo owners. Both HO-4 and HO-6 provide coverage for losses to your personal property from 16 types of perils.
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Damage caused by aircraft
- Damage caused by vehicles
- Smoke
- Vandalism or malicious mischief
- Theft
- Volcanic eruption
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance
- Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system
- Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance
- Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component).
For those in need of a renters’ insurance policy, take stock of what you have in your possession so you know what will needed to be insured.
When doing an inventory, record the items value and serial number. Be sure to take pictures of or videotape each room, including closets, open drawers, storage buildings, and your garage. Also be sure to hold on to receipts for important items in a fireproof location.
Other advantages to a renters’ insurance policy is that should the residence you are renting become uninhabitable as a result of a fire, water damage or any other reason covered by your policy, your renters insurance will provide “additional living expenses.” Typically, that means you will receive compensation to live somewhere else.
If you are looking to keep a low premium, and who isn’t these days, the premium will be determined by a number of factors. Among the factors will be where you reside, your deductible, your insurance company and whether you need any added coverage.
If you increase your deductible (the amount you pay prior before coverage begins), it can lower your insurance bill; however remember you will need to be able to pay that higher deductible should it come due.
One another note on discounts… many insurers will provide a discount for “protective devices” including fire extinguishers, smoke and fire detectors and burglar alarms.