One of the most interesting perks of renting any sort of space is that landlord has the responsibility to conduct all the repairs and insure the property. Sure, the renter can fix some smaller problems that can appear for a variety of reasons, but the biggest ones are the responsibility of the landlord. But some problems will not be covered by anyone, which is why renter’s insurance is an important thing to consider.
For instance, basic insurance will not provide coverage for the damage caused by any sort of break-ins, or for those caused by climate conditions. For some reason, many renters out there do not consider this sort of coverage important, but not having it can use many problems down the road. That’s why we would like to talk about it in greater detail, and why it is so important.
What Does It Cover?
As we’ve said that a vast majority of renters out there are not interested in purchasing any sort of insurance. But there are a couple of situations when having it would be an irreplaceable factor. For instance, landlords’ coverage will not be helpful when the apartment has been burned down for some reason. Plus, the damage caused by the thief breaking in into the apartment.
As you can see, covering all the unexpected damage, which can occur from time to time is a possibility, but only through purchasing renters insurance. Just think about the situation where the complete apartment and all the belongings are destroyed as a result of fire or water. Replacing them with your finances could be too much to handle. Not to mention that you cannot stay in that place anymore.
Besides these problems, this sort of cover provides additional protection against the claims others might have against you. Meaning, it can help with the situation when someone is damaged inside your apartment, no matter what’s the reason. The same sort of coverage can be found in hotels. If you are interested in taking a look at details about this subject, you can find out here.
One of the biggest misconceptions people have about this sort of coverage is that they think it is practically the same thing as personal property insurance. But, then take a closer look at it, you will see that the differences between these two are rather obvious. Nevertheless, these misconceptions are pretty widespread, so, knowing which one to use in a particular situation can be problematic.
The Most Important Aspects
Usually, there are four main types of protection you can receive when purchasing this sort of coverage. The first and most widespread one out there is personal property damage. It needs to be said that this is a broad topic to talk about in this article of ours. Nevertheless, it needs to be said that there’s practically no limitation when it comes to the items that can be insured.
The next one we think it’s worth mentioning is personal liability. It occurs when the landlord’s property suffers damage for a certain reason, and the renter is blamed for the incident. Numerous costs can surface as a result of these problems, including legal costs, which tend to be quite high. The most typical out of all these policies can amount to $100k.
In case the place where you live is not practical anymore after the incident, chances are that the costs can skyrocket so much that they can become even higher than they would be if the place is habitable. It is often addressed as additional living expenses. Last but not least, medical payments can represent a significant percentage of these costs, especially if someone has suffered massive injuries in your home.
How Much of It Do You Need?
Another important thing to discuss is what you should be covered with renter’s insurance. When you think about it, noticing everything you own can amount to a significantly high value. Replacing all of these items is practically impossible when something unexpected happens, and damages all the items. For that reason, you need to think carefully about the options placed in front of you.
The easiest way to do it is to create an inventory list, where you will place all the items, and present it to the company. Based on that list, it is easier to come up with a price that will cover all of it perfectly. Another way you can do it is using that list, and determining the market value of all the belongings, so, the company will have a much easier time covering all the damage, without too many problems in between.
How Much Does it Cost?
It needs to be said that renter’s insurance is one of the cheapest ones out there. The average price is roughly $10 per month. When you compare it to some other solutions, it is clear that this is one of the cheapest ones. Of course, the price will differ from situation to situation. The more items are on the list, and the more clauses are inside the policy, the price tends to be much higher.
What is Not Covered?
The final aspect of this article of ours is what is not covered by this insurance. We’ve mentioned that they can cover the damage caused by unfortunate climate-caused problems. However, it is possible only if this is specified in the policy itself. Without it, you can count on this sort of coverage. Therefore, make sure you pay close attention to all the clauses in the policy. Do not sign it otherwise.
The Bottom Line
Having a complete insight into the policy before you sign is an absolute must, no matter what type we’re talking about. Doing this without double-checking can cause many problems in the future, most notably, many unnecessary costs. Here, you can take a look at some of the relevant aspects regarding renter’s insurance, and what you can expect from it. We are certain that you will find this insight helpful for any fields you will face in the future.