What would you do if as a property renter, your properties get damaged as a result of fire, or vandalism? Would you panic or relax, and be certain that your insurance for renters has got you covered?
If you are reading this article without prior knowledge of what renters insurance is, well, we’re here to help you with just that. This content would be covering, what renters insurance is, what it does, or doesn’t cover and its benefits.
WHAT IS INSURANCE FOR RENTERS?
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Renters insurance is a policy that strictly covers the losses of properties and protects the insured from any liability claims. Renters’ insurance covers damages that occur from fire, theft, electrical malfunctions, vandalism, and plumbing.
This insurance for renters is probably the easiest and the cheapest insurance you can get. It is akin to homeowners insurance but differs in the purpose, it is for people who are leasing their properties such as houses, shops, studios, etc.
There are two ways by which this insurance policy works; they either give cash reimbursement, which pays for the actual cost of damaged properties, or replacement, which settles the total cost of replacing the lost properties.
Before buying renters insurance, it is advised that you make an inventory of your belongings and a spreadsheet of the worth of those properties so as not to under-insure yourself.
Now that you know what renters insurance is, let’s dive into what it covers, doesn’t cover, and the benefits of getting this policy.
WHAT RENTERS INSURANCE COVER
It is highly important that you know what the insurance for renters fully cover before buying one because this helps you understand what you’re going for.
Generally, the renter’s insurance has four basic coverage components, which are:
- Personal property damage
- Personal liability
- Additional living expenses
- Medical payment
PERSONAL PROPERTY DAMAGE
If your property is damaged at the incident of a fire outbreak, theft, vandalism, or looting, you can be rest assured that your insurance as a renter will cover these losses. You don’t have to worry much about replacing or fixing your damaged properties when you have a coverage plan over them.
Properties like expensive jewellery, electronics, musical instruments, furniture, etc can all be replaced or reimbursed for with this insurance.
PERSONAL LIABILITY
Renters’ insurance doesn’t only cover property damage but also provides liability protection. It covers the cost associated with lawsuits or damages. In a case where, you, your family or even pets incurs injury on a visitor, and you get sued for it, your insurance will to an extent provide liability protection coverage.
This insurance would also pay for the medical bills of the
ADDITIONAL LIVING EXPENSES
Additional living expenses (ALE) coverage only applies only when the damages done to the apartment makes it unlivable and you have to live out of your home till it’s fixed. This insurance pays for the expenses of living in hotels, the feeding and the cost of accommodation.
MEDICAL PAYMENT
Settlement of medical bills is also included in the insurance for renters perhaps there is an injury of a guest on your property. This coverage is however limited and can’t cover all health expenses.
WHAT RENTERS INSURANCE DOESN’T COVER
There are certain damages that renters insurance doesn’t cover, it can’t protect you from all risks. Renters’ insurance does not cover losses incurred from the tenant’s negligence or intentional acts.
Environmental hazards such as floods, and earthquakes are also not covered by this insurance. It also doesn’t cover car damages, sinkholes, pests invasion, or third party belongings.
However, they can be covered by an additional premium plan to the standard renter’s policy. You can have add-ons like car insurance, earthquake policy, third party insurance, sinkhole endorsement, etc.
BENEFITS
Here are a few benefits:
- Property protection: As an insured, you enjoy the benefit of not having to worry about your properties when they get badly destroyed. Renters assurance fully covers this, provided you have the right documents which include an inventory of all your properties and their respective costs.
- Saves you from liabilities: As earlier stated, This insurance takes care of any liabilities you may be faced with as long as it is within the policy agreement. You are saved from suffering the liabilities and damages alone.
- Saves you from the stress of refurbishing: With this coverage, you don’t have to bear the stress of renovating or fixing damaged properties. The insurance company provides all that for you as long as your insurance plan hasn’t expired.
- Offers cost reimbursement: This insurance for renters offers you the option of getting cash back for all wrecked properties. It offers you the cash equivalent for your loss, this is why making a list of all valuable properties in your home and their prices is very necessary.
Renters insurance can only be offered to you when you file a claim. This process might be a quite rigorous one because you need to provide documentation and the right information for your insurer. After filing a claim, you can sit back and watch your insurance cover up for your loss, well isn’t that great?
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