In cases where you cannot afford to buy a home yet, renting one is one of the possible options to consider. Before you can move into your new rental home or apartment, you need to make sure that you have signed the lease paperwork. Once you have agreed to everything that has been stipulated on the contract, you can breathe a sigh of relief. Or so you thought. There is still such a thing as renters insurance that you need to be aware of. Just like different types of insurance, you might be wondering what the renters insurance covers.
Figuring out the coverage might sound like a daunting task, but understanding the basics will make the process effortless. You can get yourself protected by knowing the basics of renters insurance, the rates and the coverage of the policy.
Renters insurance serves as protection against loss or damage of personal property within your apartment or any rental property. This insurance has the following parts:
Deductible: The deductible is the annual amount that you need to pay before the insurance firm begins to cover the costs. The deductible may range from $50 up to $750 depending on the policy. One example is when you have a separate deductible amounting to $50 for the electronics and a deductible of $100 which will cover any other items. It is also possible to have a different deductible which will cover medical, loss of use or liability. The rule of thumb is that the lower your total amount of deductible, the more you have to pay for the policy. Before you secure a renters insurance policy, it is important to review the plan specifics so you will know how the deductibles work.
Monthly Premium: The monthly premium refers to the amount of money you will need to pay per month for your insurance coverage. The insurance company determines the amount based on the coverage limits and deductible you choose. Even the area where you live will serve as a determining factor.
Coverage Limits: Keep in mind that all types of insurance have coverage limits and it is solely up to you to choose the option that suits you. If you prefer lower coverage limits, you will also have a lower monthly premium. However, this option will also mean that you will have higher overall risks. If your coverage limits are higher, then your monthly premium will be higher as well, but with lower overall risks. The coverage limits range from $50,000 up to $500,000. It may be higher depending on the coverage you are looking for. It is important to note that rental insurance is easy to comprehend. Whether you have personal property or you are renting out your home or apartment, the renters insurance is the best way and only way to protect it.
Myths about rental insurance
Without arming yourself with information about renters insurance, you will easily fall prey into myths. It is important to know the things that the insurance covers and does not cover.
It is expensive to get renters insurance.
One thing that deters individuals from getting renters insurance is the cost. However, this perception is furthest from the truth. On average, the policy you will need to pay depending on the coverage will be around $12 per month or $144 per year. The policies also have $100,000 for the renters liability insurance, $10,000 for the personal property coverage and a deductible amounting to $250. With this information, you can clearly see that having renters insurance is not as expensive as you thought it will be considering the benefits you can obtain.
Your landlord gets you covered.
Another misconception that many people are inclined to believe is that the landlord is responsible for their personal property. The truth is, a landlord or a property manager is only responsible for the loss or damage to the actual property itself. If your microwave exploded, the property owner will shoulder the damage to the apartment’s structure, but will not pay for the loss or damages that the fire or explosion incurred from any of these situations, unless you have renters insurance.
The coverage of renters insurance
Although renters insurance is affordable, most renters are still not getting coverage because of overestimating the cost. The most affordable way to protect your personal property is by securing renters insurance. Here are the things that renter insurance covers:
Your personal property is the first thing that renters insurance will cover. The policy covers things like jewelry, clothes, appliances, computers, laptops, smartphones, and furniture electronics. The loss for things due to theft, fire, and lightning, explosions, riots, falling objects, damage by aircraft, windstorm and hail, vandalism, short-circuit damage and leakage are covered by your basic renters insurance policy. The policy can also cover personal belongings that are not in your rental home or apartment. If your personal property has been stolen while you were on vacation, the insurance policy will cover the lost item.
Temporary Living Expenses
If your apartment is no longer livable after a calamity or natural disaster, there is part of the insurance policy that covers you. The loss of use provision covers food costs, travel expenses, and hotel bills. It is essential that you read the fine print so you will be aware of the policy coverage.
Personal Liability and Medical Bills
An injured family member can also benefit from renters insurance. There is a portion of the policy that covers medical and personal liability. This policy can also shoulder expenses in case of injury or accidents while on your property. You will need to get a generous amount of coverage, especially if you are keeping pets at home. The renters insurance policy also covers things like credit card and bank forgery, food, items that are stored off-site, and other people’s property.
The renters insurance does not cover certain situations like property damage because of bugs, natural disasters, nuclear hazard, the personal property of your roommates, and expensive things in some cases. Before you get renter insurance coverage, be sure to read reviews about insurance companies. These days, due to the advancements in technology, getting coverage is fast and easy. In under 2 minutes, you will know how much you are going to pay and the coverage of your policy. You do not have to speak with an insurance agent unless there are questions about the policy.