Whether you have little or a lot, you may find it difficult to replace all your belongings if they were damaged or suddenly stolen from your rented house. Even tenants who can afford to cover the cost of their lost possessions get renter’s insurance because it simply makes good financial sense. The renters insurance can protect your property in case of fire, flood or theft, depending on the type of coverage and the cause of the claim. You can also pay legal costs if an accident in your rental results in a lawsuit.
Is Tenant insurance Quite affordable
The renter’s insurance policy costs much less than replacing your stolen valuables or repairing your belongings damaged by water due to flooding. The average cost of tenant insurance in the United States is US $ 12 per month for US $ 30,000 in property coverage and US $ 100,000 in legal insurance liability, which is approximately the price of a movie ticket or a couple of coffees.
The price of insurance will vary depending on the company you hire, the country you are in, the size of the property and the value of the property. But, in general they are affordable prices.
Tenants pay much less for insurance than homeowners or landlords because, as tenants, you must cover only the cost of your property within a home and not the structure itself, since the rental house is not your responsibility to Rebuild if it caught fire or was damaged by a storm.
What is covered in Tenant insurance?
Tenant insurance has two components: property coverage and legal liability insurance coverage. Personal property coverage in renter’s insurance pays the replacement or reimbursement of your lost or damaged belongings. The insurance’s legal liability coverage, on the other hand, pays your legal costs and any other money that you are ordered to pay in case someone gets hurt in your rented house.
Items that you can expect to cover a tenant’s typical insurance policy under personal property coverage include:
- Computers, laptops and tablets
- Televisions, stereo and other electronic devices
- Guitars, pianos and other musical instruments
What property coverage does not cover
Certain limits apply to personal property coverage, especially when you use items partially or exclusively for a company that operates from your rental. For example, you use your computer and an electric guitar for business and pleasure. The insurance company can cover these completely or set limits on how much it will cover, paying only part of its cost to replace or repair if they are stolen or damaged. But suppose you also have music production equipment and software that you only use for commercial purposes, your tenant policy probably won’t cover that.
Insurance liability coverage and its limits
Guests in your home may get hurt and need medical attention. If someone sues you because of something that happened on your rented property and they find you guilty, renter’s insurance liability coverage can pay up to a certain dollar amount, as much as US $ 100,000, to cover costs such as:
- Wages lost to the victim
- Hospitalization, emergency room and ambulance
- X-rays, medicine and therapy
- Legal fees
But there are also limits on insurance coverage. For example, certain dog breeds may not be covered by the legal liability coverage of certain pet companies. Insurance companies may deny renter’s insurance if they have a breed of high-risk dogs, such as Pit Bull, German Shepherd, Rottweiler or Doberman Pinscher. In some states, pet liability coverage is not included in the tenant’s basic insurance. In addition, a company may limit the amount of liability coverage per pet. In that case, you would have to buy an additional policy to protect yourself in case your dog hurts someone.
Tenant insurance liability coverage will also not protect you from a claim related to your business. If you run a business from your rental and make a mistake or end up on the wrong side of a lawsuit, the renter’s policy will not cover you.
Separate coverage for catastrophes
The basic tenant insurance policy will generally not cover losses due to:
- Blizzard damage
- Flood due to weather
Instead, the insurance company can offer you a separate policy, known as an “additional clause,” at an additional cost. Depending on where you live, an additional clause can be expensive for your insurance coverage. For example, if you rent in California, which is known for earthquakes, or in Florida, which is known for hurricanes and floods, you will face higher premiums. But certain government-backed programs can help reduce costs for tenants, such as California Residential Earthquake Insurance and the National Flood Insurance Program.
When to get renter’s insurance?
You must buy renter’s insurance when you start renting, although you can buy it when you are already in full lease. You should also obtain renter’s insurance if the landlord has housing or landlord insurance, as that coverage may not completely cover your belongings or your expenses if the pipes are broken or if a natural disaster occurs. You should also buy your own tenant’s insurance policy if you live with a roommate, whether or not you buy a policy, since you own separate properties with a different value.
Consider this when selecting
Where you rent and your credit can affect your renter’s insurance rates. Areas with high crime rates have higher premiums due to the greater risk of theft or vandalism. In addition, a poor credit score will cost you more, as some companies perform a credit check before making sure and base their rates on how well you have managed to pay your bills, such as car loans and credit cards. In addition, previous claims about the tenant’s insurance policy may also prevent you from obtaining a policy in a new place or renew it with the same company.
To find out if renter’s insurance makes sense to you and to find the best coverage options for your situation, contact some insurance companies for quotes. If you have car insurance, your current insurance provider may be a good place to start. Some companies give you a discount when you buy two or more types of insurance with the same company.