Many people are comfortable with the concept of home insurance. They buy a home and then they insure the contents of that home against the dangers of life. But what about people who choose to rent? How they can protect themselves? Are they responsible for the safety of people visiting their apartment or is it the landlords responsibility? For these issues and many more, renters insurance was created.
Renters insurance works to provide renters with the same amount of protection that homeowners get. There are many dangerous incidents which can be a danger to you when you rent. By looking into renters insurance, you can be prepared for the vagaries of life.
Renters Insurance Coverage
There are many things and situations which renters insurance will cover. Renters insurance covers two things in the main. The first is possessions. A person’s things within a home are protected from damage or loss. The second thing is liability. This is the potential that people will become injured on the property. If they are, they may have the to file a lawsuit. Renters insurance helps with legal fees or paying off said lawsuits.
When it comes to a person’s belongings, there’s quite a few things that they are covered against. The first and most obvious is theft. Break ins happen and people need some coverage. Belongings will also be protected in the event of fire or some natural disasters. When it comes to extreme weather scenarios, it’s important to find out just which ones are covered against, and which are not. Earthquakes are often an additional coverage that people should pick up on the west coast.
Rules And How Renters Insurance Works
There are different types of renters insurance plans which can be chosen. The first is a full plan. This will provide unlimited coverage for items within the house up to their full value. In addition, it will also provide full coverage in case of lawsuits. However, renters usually aren’t renting because they want to. This kind of plan is typically incredibly expensive.
Most plans cover items up to a certain value and come with a deductible. This means that yes, you’ll receive some money back, but you do need to pay out of pocket when making a claim. There’s also often value limits on items like jewelry or expensive rare collectibles. It’s sort of assumed that very expensive items will either be insured on their own or kept in a safer place than a residence.
There are some other added benefits to renters insurance. People who rent tend to move more often. Most renters insurance will actually last and carry over once a person has moved for a specific amount of time. It’s usually only a few months, but it can be a lifesaver to someone who has moved and then experienced a fire in their new home.
Does Everyone Need Renters Insurance?
Not everyone is interested in renters insurance and it is not mandated by law, so people don’t need to be covered. However, some landlords will only rent to people who are willing to get renters insurance.
Renters insurance ensures that there should be dual insurance coverage on a property (assuming the landlord has insured their investment as well) and that an accident on the property won’t have devastating financial consequences to either you or your landlord.