What is renters’ insurance?
1. Renters’ insurance is an insurance policy that provides most of the benefits of homeowners insurance.
2. It does not include coverage of the structure or the dwelling. An exception may be small alterations that a tenant makes to the structure.
3. Personal property coverage, a typical component of renters’ insurance, may help cover the cost of replacing your stuff if it’s unexpectedly damaged or ruined. That protection generally applies to certain risks (also referred to as “perils”), such as fire and theft.
4. Landlord insurance is designed to help protect the owner’s dwelling, while you, the renter, are usually responsible for protecting the belongings you keep inside. Similarly, while landlord insurance may offer liability protection for the policyholder, that protection typically does not extend to tenants
5. Many large and medium sized rental properties will include a requirement in their lease that tenants hold renters’ insurance.
6. It is important to know what type of damage your insurance covers. Typically, there are three types of coverages available. They are loss of use, personal property, and personal liability.
7. If your possessions are stolen during a break-in or damaged by a fire or severe windstorm, a renters insurance policy can allow you to recover their value.
8. If someone is injured during an accident in your home and you are alleged to be legally responsible, renters insurance may help protect you in the case a liability lawsuit.
9. Check out the Insurance Information Institute’s website and read their informative article called Your Renters Insurance Checklist:
WHAT IS THE AVERAGE COST OF RENTER’S INSURANCE?
- The average cost of renters insurance is $187 per year, according to the most recent data available from the NAIC.
Please check out this link for more info on the average cost. http://www.valuepenguin.com/average-cost-renters-insurance
HERE ARE SOME LINKS TO A COUPLE COMPANIES THAT CAN PROVIDE RENTERS’ INSURANCE:
COMMON MYTHS ABOUT RENTERS INSURANCE
1. “The landlord’s insurance covers me.”
- Your landlord’s insurance generally only covers the building where you live.
- It does not cover your personal belongings and your liability.
2. “I don’t need personal liability insurance”
- Your landlord’s policy most likely does not include liability coverage protecting you for something that happens in your rented residence.
- You could be held legally responsible for injury to another person or damage to another person’s property if an incident occurred within your rented residence, or elsewhere.
3. “I don’t own very much.”
- Most people’s belongings are often worth more than they think. That’s one reason why you need renters insurance coverage.
- Some insurance policies are flexible, allowing you to select the coverages and insurance amounts that suit your needs.
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