Renter’s insurance may be one of the most affordable and important types of insurance. Is this added layer of security necessary when renting property? Hotwire Insurance explores what’s included in a general renter’s insurance policy and why your landlord is probably not protecting your belongings.
Do I Need Renter’s Insurance?
You’ve most likely heard of renter’s insurance, but are you really aware of the details surrounding it?
For starters, insurance is available for your protection. It’s important to know that without renter’s insurance, you could be liable for any sort of accident that takes place on or in the property you’re renting.
Specifically, if you invite someone over, and they get hurt or injured while on or in the space you’re renting, you could be sued. More so, you could be responsible for paying for this person’s medical bills. However, with renter’s insurance, you will likely get assistance paying for those medical bills, as well as your legal fees. With personal liability protection, you’ll be covered for all unintentional bodily injury and property damage.
When most people hear the words “renter’s insurance,” the idea of stolen property comes to mind. And while this special insurance can reimburse you for items that are stolen from the property, it can do a whole lot more than that.
Particularly, renter’s insurance may cover items that are damaged by the following:
- Thunder and Lightning
- Fire and Smoke
If your apartment is unlivable while being fixed or repaired, renter’s insurance may cover living expenses, or relocation expenses. Depending on your particular policy, items may even be covered when stolen from your car, while on vacation, or during the process of moving.
All About Reimbursement
Now that you know a little bit more about reimbursement, it’s imperative to learn about the different kinds of reimbursement presented with renter’s insurance.
First, some types of renter’s insurance only pay the cash value of your possessions – whatever was stolen or ruined. This means you will only be paid back what your possessions are worth, minus depreciation value.
However, there are policies that pay for replacement costs, meaning the amount the item would cost today. Yet, policies that cover the replacement cost of an item will not include factors such as deductions for depreciation.
In regards to renter’s insurance, it’s vital to understand your plan, and how it can work for you. As with any type of insurance premium you choose to purchase, different rules will apply. Before you sign up for something, make sure it’s exactly what you want.
Are You Insured?
You may feel as if renter’s insurance is a big waste of money. However, wouldn’t you rather be safe than sorry? Even if you don’t end up using the insurance to replace or repair items, it’s still comforting to know that you are protected. In fact, it’s better to have this special insurance and not need it, versus needing it and not having it. If you’re not currently insured, consider the consequences of not having renter’s insurance that could follow.
Hotwire Insurance Services, a full-service independent agency, works for you and not insurance companies and does not charge a broker’s fee. Hotwire Insurance Services local agents can answer all your insurance requests.