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Do You Really Need Renters Insurance?

This is Why You Need Renters Insurance What would you do if you came from work one evening to find that your apartment was broken into and your most valuable belongings missing, from electronics to kitchen appliances to jewelry? Off course, you would panic and then quickly remember that your landlord has insured the property and therefore you would be compensated. The truth is you wouldn’t. Not a dime would be paid to you. Landlord’s insurance only covers the building itself and nothing else between the walls. The only way you would be safe in such a situation is if you have renters insurance. Renters insurance provides protection against loss or damage to your possessions while renting a particular house. This policy covers most household items such as furniture, electronics, household appliances, computers, bikes etc. If damage or loss occurs against any of these insured items, the insurer will pay the cost of replacement or repair. What are perils that can be insured against? Just like in any insurance policy, properties are only insured against insurable risks. The main ones covered in this type of insurance include fire, theft, water damage not resulting from floods, vandalism, windstorms, smoke etc. What is not covered by this insurance? Just like in home insurance this insurance policy may not cover a number of risks. Some of the most common risks not covered include floods, terrorism or intentional damage . That notwithstanding, it is not every property that is wholly covered by renters insurance. Most policies only offer a basic cover for possessions such as jewelry or expensive stereo system or other specialty items. This means that they are covered only to a particular extent and if loss or damage occurs, full compensation cannot be made. To cover these items in totality, an additional policy usually called a floater is recommended. Even though they may raise the total cost of your premiums, floaters are important because they give you peace of mind knowing that even the most valuable of your properties are protected. It is important that you consult your insurance provider at the time of signing the policy on the limits of you cover and floaters available. Is that all you get from this insurance? Renters insurance offers more than just repair and replacement of damaged or stolen property. Some of the other important features include: 1. Liability coverage This works like third party motor vehicle insurance. In the instance that you are held liable for an injury that occurred to a visitor within your home, the insurance will cover those costs. In a situation where the injured person decides to sue you in a court of law, the insurer can pay legal defense fees up to the extent of your cover. It may also cover damage to other people’s property incurred by members of your family or your pets. 2. Additional living expenses If you are unable to live in your rented home as a result of the occurrence of an insured peril, the insurer will compensate you for additional living expenses you may incur as a result of staying elsewhere. These costs may include food, transport, hotel stay etc. It is, however, important to note that this is subject to a limit based on your policy. Why should you consider renters insurance? 1. It can give you peace of mind knowing that your possessions are covered helping you to concentrate on more important things. 2. Floaters can help cover specialty situations even for risks not included in the main policy. 3. It is flexible as it allows one to choose between actual cash value cover or replacement cost coverage. This determines the premiums that are to be paid. 4. Some insurers offer discounts on other types of coverages e.g. motor vehicle if you have a renters insurance policy with them.
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