Tips for Why You Need Renters Insurance
Renters insurance may not be your top priority when you move into a rental property…but it should be high on the list.
With insurance for renters, you put yourself in a much better position should your property suffer damage or if someone is injured at the residence you are renting.
The following are some often asked questions regarding renters insurance and why you should have it:
My landlord's insurance covers me, correct?
In the majority of cases, your landlord's insurance covers just structural damage to the building itself not resulting from a tenant.
Should you leave the tub running, you may be liable for the whole problem both in your apartment and the one below you.
If your building is gutted by fire, your landlord's insurance should cover repairs, but only to the building, not to your possessions.My valuables don’t cost much- why should I get renters insurance?
Add up the value of your items such as the TV, stereo, furniture, clothing and other items.
Would it be hard to replace them minus insurance? Go room by room and compile a list of your personal property to come up with an estimate of the total value of your possessions.
You would be surprised how quickly you can surpass $20,000 or more in value.What is the renter's insurance deductible?
A deductible is what you will have to pay out of your own pocket prior to your renters insurance kicking in.
Should you have a $500 deductible and fire damages your apartment furniture in the amount of $2,000 the insurance company would pay $1,500 ($2,000 minus your $500 deductible).If a natural disaster occurs, am I covered?
When it comes to windstorms, yes, coverage is there.
Coverage for a resulting flood, however, may be excluded.As for floods, no, the majority of renters’ insurance policies will not cover damage caused by a flood.
Look into the National Flood Insurance Program (NFIP) which offers flood coverage for some areas for contents only.It is recommended that you check with your landlord to determine the flood zone of the property where your rental is.
When it comes to earthquakes, there is no coverage in standard renters’ insurance policies.
In the majority of states, consumers need to purchase optional earthquake coverage that comes at a nominal additional premium.What happens if there is a burglary at my residence?
Burglary, robbery or theft claims should always be instantly reported to law enforcement.
A number of policies offer coverage for stolen property but only if there is evidence of forcible entry into a locked apartment or home.The majority of policies provide limited coverage on a number of property losses due to theft.
Be sure to check your policy to see if your renters insurance covers this.