Renting a house or apartment is always a good way to cut costs that homeowners have to pay, including home insurance. If you have ever rented a property or you are about to rent one, it is good that you know that the insurance you will be granted with by your landlord might not be enough. People tend to believe that a renting contract includes full coverage over the property and the tenant’s belongings inside of it, but this is not usually the case. A landlord’s insurance policy often cover the structure resulting form natural or human damage, but tenants should always buy their own renters insurance to play it safe.
Indeed, you can take our renters insurance, which is an insurance policy that is not publicized at all, but does exist. Renters insurance basically covers your belongings, which are not covered under the landlord’s insurance policy. This type of insurance policy also covers a few other aspects that you would probably not have realized at first, but that you may need to be aware of, such as the following.
- Bold Point in Renters Insurance Coverage
Some people think that their belongings are not of great value, so it is not worth buying renters insurance. In fact, many people simply think that whatever happens in the rented home will be covered by the landlord’s insurance, but now you know it will not. If you are still unsure of taking out renters insurance, or you cannot figure out what the benefits are that such policy carries, these are the main aspects that renters insurance carries out:
- Personal possessions loss or damage coverage
- Injury coverage for people visiting your home
- Protection from thievery actions
- Disasters that are not covered by the landlord’s policy
In this last matter, one good example is fire produced by your own imprudence or negligence, which can be determined at the moment to pay the landlord’s policy. A good company for researching rates is Renters Insurance.net.
- Types of Renters Insurance
Most common renter insurance policies are the HO-4 and HO-6 which cover riot, burglary, theft, vandalism, water and smoke damage, falling objects, electrical surges, fire, volcanic eruption, and lighting, However, there are other standard policies that may include earthquake or flood damage or loss. Available renter’s insurance policies may vary according to the specific region you live and some renter insurance policies may not include full coverage, but require that you get extra protection.
In addition, there are two options in renting insurance to choose from Actual Cash Value (ACV) and Replacement Cost, which determines the payment you will receive in the eventuality to make effective your policy. ACV is usually a better option if your possessions include a large number of household appliances and electronics to protect yourself from depreciation.
On the other hand, be aware that most renter’s insurance policies will not provide you coverage for costly jewelry, firearms, or large amounts of cash on hand. Some insurers may provide you with limited coverage on this matter and most of them will not include equipment that you use to run a home-based business nor liability, so it is advisable that you purchase additional insurance for all those aspects not covered by the renter’s insurance policy.