Renter Insurance
Renters insurance is insurance coverage that protects you from financial loss due to disasters and other damage to and in your apartment or rental unit. Since landlords generally have insurance on their building, and you don't own any of the actual structure, renters insurance covers your own personal belongings inside and outside of your apartment. This makes renters insurance significantly less expensive than homeowners insurance, in most cases.
Renters insurance is basically an agreement between you and an insurance company. You agree to pay a certain amount every month or year (called a premium), and the insurance company agrees to pay for all of or most of the expenses when certain types of damage or accidents occur. What types of things are covered by your insurance depends on the policy, which in turn depends on several factors. At InsuranceNook, we hope to provide you with some helpful information that can aid you in your renters insurance quest.
One of the best things you can do to save money is to compare renters insurance companies. You can get free quotes and compare prices on insurance plans that fit your needs here at InsuranceNook.com!
Why Renter Insurance Is Good For You
Basically renters insurance protects you when damage or disasters occur that cause you to lose money due to lost or broken possessions. Renters insurance can give you peace of mind, knowing that whatever may occur, you will be able to replace your belongings without having to pay for them again.
Most Common Types of Renter Insurance Plans
Renters insurance ensures that your belongings are covered against loss from theft, smoke, lightning, vandalism, explosions, wind storms, water damage, and fire, although it generally does not include flood or earthquake coverage. Additionally, renters insurance gives you liability coverage for when someone is injured at your apartment or rental unit, either by you, a member of your family, or your pet. It can also pay legal costs if you must appear in court for these issues.
Additionally, most renters insurance plans will pay for your temporary living expenses if you are forced to relocate due to a disaster.
There are two basic types of renters insurance coverage:
Actual Cash Value
This level of renters insurance covers you for the cash value of your belongings, minus depreciation.
Replacement Cost
This level of renters insurance pays for the replacement cost of your belongings, without regard to depreciation.
5 Common Renter Insurance Questions & Answers
Q. Is it a good idea to take an inventory of my possessions, and what is the best way to do so?
A. It is always a good idea to have an inventory, however complete, of everything you own, especially in case of a fire or natural disaster. Keep this inventory somewhere besides where you live, so it doesn't get destroyed in the disaster, too! Make a list of everything you own, and take pictures if you can, then store them somewhere such as online or on a personal computer at your work, or at a family member's house.
Q. Is flood insurance part of a regular renter insurance policy?
A. Flood insurance is not part of a regular renters insurance policy. It must be purchased separately, and usually this is done so through the National Flood Insurance Program, at www.floodsmart.gov. There are a few private companies that offer flood insurance as well.
Q. Will my renters insurance policy cover things that stem from lack of maintenance?
A. Generally no. Mold, infestations, and other damage that could be prevented by reasonable maintenance will not be covered by most renters insurance companies. However, if the lack of maintenance is the fault of the landlord, his or her insurance may cover you, or at the very least your landlord will be responsible for paying you directly for your losses. If your landlord refuses to do so, you can take him or her to court.
Q. Can I rent without insurance?
A. Although it is generally not smart to do so, it is legal to rent without renters insurance. We recommend, however, that you always have insurance, because you never know when something could happen.
Q. Are things I own, like jewelry, covered by a renters insurance policy?
A. Yes, but only up to a certain amount. If you have expensive jewelry that you would like to protect, you should purchase a floater policy and have your jewelry scheduled or endorsed, so the value is recorded and the insurance company knows about them. Your premiums will go up, but you will be able to have more protection for these valuable items in case of theft, loss, or damage.
Conclusion
Renters insurance can be very important for your family, because you never know when an accident or disaster will occur. Furthermore, renters insurance can protect you from liability when someone else is injured by you or in your home, and it can help you avoid losing a lot of money when jewelry or other valuables are damaged or stolen.
InsuranceNook offers free renters insurance quotes from several companies at the click of a mouse. Apply for free quotes for your renters insurance today!