The current real estate market has been pushing many to rent lately. When you finally locate an apartment you love then learn that your renter’s insurance premium is going up a bit, and tends to make a renter ask questions. When a property owner requires that tenants carry insurance, they are protecting themselves from shelling out massive damage recoupment in case of natural disaster, fire, or robbery. 

Taking Inventory: Much like homeowner’s insurance, renter’s insurance provides protection from various disasters that can have grave effects on your home, and will speed up the process of replacing valuables and getting your money back after anything treacherous happens. Even if your lease does not require it, insurance for rented homes is a great comfort to have, because without it, rental homes and their leaseholders can be left vulnerable.

The Property Owner’s Policy: The Property Owner’s insurance policy may not completely pay out for the tenant’s loss of property if a catastrophic event occurs. If everything you own now were to be damaged or destroyed, it could prove difficult to find the means to replace it. Even if the sweet apartment you have just found does not have a lease that requires insurance, you should opt to protect your rental. 

The Coverage Provided for Your Valued Property: Homeowner’s insurance will cover repair and replacement of the building, grounds, and contents of a home if they are stolen or damaged. Renter’s insurance covers the contents of the apartment or rented house, with the actual property owner carrying a commercial insurance policy to cover the structure and a home warranty to cover the working appliances and systems within. 

Renter’s insurance will cover the damage or destruction of your personal items when they are ruined from unpredictable elements such as fires, wind damage, explosions, smoke damage, collapse, theft, vandalism, and damage from burst pipes. You will need to pay an annual premium depending on how much coverage you need, which is based on the quality of goods you own and other factors such as your apartment’s square footage.

What Kind of Benefits does Supplementary Coverage Offer? Since identity theft has become such a common occurrence, it is comforting to know that renter’s insurance in most cases will cover credit card fraud and check forgery, so if a thief tries to use your cards, you are not liable. This benefit is well worth it, as the cost to hire an attorney to combat identity theft and credit use can be astronomical. Many policies will also cover items that may not belong to you but were damaged in a covered event.

Another huge cost that is not always considered is hauling away debris, as fires, fallen trees, and violently burst pipes can leave behind a huge damage bill. If you must remove your personal items this cost may be up to you, and it can be a dangerous task during an all-out disaster. Renters insurance will cover the cost of hiring a professional to haul away any debris. 

Are There Other Events I May Want to Add to My Policy? All insurance policies have certain limits to their coverage, but you can sometimes increase the overall limit by being willing to pay a higher premium. You can also choose to add endorsements to cover high-value items like jewelry, musical instruments, or personal artwork. If you live in an area where earthquakes are common, you may want to inquire about insurance for personal property loss that can be added to your policy. These days, many individuals choose to run a small business out of their apartment, and you can ask us at Alexander Insurance Agency about purchasing a separate endorsement for the livelihood of an at-home business.

Reservations with Policies Regarding a Roommate: If you are living with a roommate, your renters insurance policy does not cover them and their property. Most policies will cover one individual or family unit, so each individual tenant needs their own policy to protect their liability and unique belongings. Even if your lease does not formally spell out the need for all renters to have their own policy, you’ll want to maintain separate policies to hinder any rejection of claims and confusion that will take place if a claim ever needs to be filed. 

Talk to us today to see which renter’s policy is right for you! During a harsh buying market, we can assist if you find yourself becoming a renter and needing the best in longstanding protection for your belongings.