Renters insurance helps landlords protect their property in view of unexpected events, which are also known as covered perils. Considering the growing percentage of rental properties and the increasing numbers of home-sharing services (such as AirBnB), such an insurance might be a good solution to avoid the staggering costs of repairing and/or recovering your property.
At the present time, renters insurance usually has three coverage types: personal property, liability, and additional living expenses (see below). So, if your property will be damaged or there will be a reason for the insurance company to reimburse you, you will be compensated according to the policy rules.
However, even though the renters insurance helps you to pay for a covered loss, it is possible that you will have to pay a deductible (it must be specified in the policy). Usually, the lower the premium of the insurance is, the higher deductible you will have to pay. In either case, both the deductible and the premium are listed in the policy of your renters insurance.
When you need to report the claim in regards to your insurance, contact your agent as soon as possible. You also need to protect your items and property from further damage – discuss it with the agent if there is any ongoing damage and anything has to be fixed urgently. It is also advisable to discuss the coverage of the policy with your agent in order to understand what is covered by the renters insurance. After all, you should document all the damaged property and items in writing, as well as to take photos and videos of the damage.
Personal Property Coverage
This is the basic, standard component of renters insurance, which means that the cost or repair of your belongings (such as electronics, clothing, furniture) is covered. However, an important thing you should pay attention to is the coverage limit – anything that goes above it will not be covered by the insurance company.
Such losses are covered in case of any event specified in the policy, and those events are also known as “perils.” One of such accidents may, for instance, be a fire, which damages and/or destroys your property. In such a case of a fire, those items (such as electronics and clothing) destroyed by it will be covered by the insurance company.
Rarely, insurance policy covers the theft of property as well. Typically, you need to pay extra premium in order to get this peril listed in your policy. If your insurance covers it, you will be compensated for the damaged and/or stolen property after a break in to your apartment or house.
In either case, every claim for your personal property loss or damage is liable to a deductible. So, you need to think in advance of how much personal property coverage you need. Also, keep in mind that some belongings – such as jewelry or coins – may be just partially covered or not covered at all. In that case, you will have to buy an extended personal property coverage.
This is another type of a renters insurance coverage, which helps you pay for the damage of property or medical bills of another person, whose damage was caused by you. There is also a coverage limit that applies to such accidents.
Additional Living Expenses
In case you incur additional costs due to the property damage (such as hotel bills in case of a damaged residence), the insurance policy may cover it as well. Check it in advance with your insurance agent.