Renting can be a great opportunity for those who do not wish to become involved with the costs and labor typically associated to home ownership. After all your landlord should take care of things like upkeep and maintenance, property insurance, and certain utilities.
It's important to understand however, that while the building itself is covered under your landlord's insurance policy, your contents are not. For this reason, it's always a good idea to take out your own Renters Insurance Policy to cover your personal property in the event that a Fire, Water Damage, or other covered loss may occur.
While most Insurance Agents are able to assist you in purchasing Renters Insurance, and happy to answer any questions you may have, we wanted to put together some answers to common questions people ask about Renters Insurance.
Is Renters Insurance expensive?
Not at all. Renters Insurance can cost as little as $ 20.00 per month! With the potential costs of replacing your personal property should you suffer a claim, it's well worth the expense.
Isn't my Landlord responsible for property damage?
In most cases your landlord is not held responsible for damage to your contents. Also, while your Landlord's Insurance Policy does cover the structure, this coverage does not extend to your furniture or personal property. A Renters Insurance Policy will provide you with the same peace of mind that your Landlord has, and protect you should your apartment ever suffer a claim that damages your property.
Does Renters Insurance protect my belongings for their full value?
When speaking with an Insurance Agent, you should have the option for "Replacement Cost" coverage, which would cover the full replacement cost value of your belongings. This is generally the recommended coverage type, and many Insurance Agents will suggest this coverage when shopping for a Renters Insurance Policy.
Does Renters Insurance cover anything other than my personal belongings?
Most Renters Insurance Policies do cover your liability should you unintentionally cause damage to the building, or to a neighbor's apartment. For example, should your bathtub or sink overflow and run down into an apartment below, resulting in damage, your Renters Insurance Policy should extend coverage for these damages. Additionally, the same Liability Provision of your Renters Insurance Policy will also extend coverage should someone slip and fall or get injured in your apartment due to your negligence.
Is it worth having Renters Insurance?
Even sparsely decorated apartments can easily have several thousand dollars worth of furniture and personal property. Take a moment to assess all of your belongings and what the cost would be if you had to replace everything tomorrow. How much would it cost to replace your furniture, clothes, television and entertainment equipment? Pay specific attention to valuable items such as artwork, jewelry, and musical instruments. You're likely to be surprised by how much you really own, and the cost necessary should it ever need to be replaced. A Renters Insurance Policy is able to give you peace of mind should a claim ever occur.
Does my Renters Insurance Policy cover my roommate's belongings too?
Generally a Renters Insurance Policy covers your belongings and that of your immediate family or spouses that reside with you. You are able to take out a Renters Insurance Policy in both of your names, but make sure you have a great relationship, and that you update the policy should they move out; as any checks will be made out to both parties.
As a Tenant, what does an Insurance Claim mean to me?
Please see our previous story discussing What An Insurance Claim Means To A Tenant.
We hope you found this helpful! Should you have further questions about Renters Insurance, please contact your local Insurance Agent, as they will be happy to assist you. Of course, if you ever suffer a pipe break or other Insurance Claim, please don't hesitate to Contact Us! We're happy to assist you and your Landlord through the claims process!
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