As per the Census Bureau’s Housing Vacancy Survey, around 976,000 renters per year worth of average growth had been observed through the years 2014–16. ISO also reports that in 2016, 5.3% of insured homes made a claim of which 97.1% were about property damage and theft.
So if you’re renting or subletting a house, it would be a good idea to get a renter’s insurance. Having the insurance will protect you against any damage or loss caused by unforeseen circumstances. But before you buy one, make sure to understand what a renters’ insurance is and the different options available.
Understanding Renter’s’ Insurance
Simply put, a renter’s insurance is a type of property insurance that covers your belongings. So in case a theft or fire destroys your possessions inside the rented property, your renters’ insurance will pay for replacing them. Many renters make the common mistake of assuming that the insurance of their belongings will be covered in the landlord’s policy. That is not true. Unless you can prove that the loss was due to the property owner’s negligence, their policy will strictly cover the structure only.
Besides protecting your belongings against damage, the insurance will also cover for additional living expenses. So, if your property becomes temporary uninhabitable due to fire, for example, then your renter’s insurance will pay for you to stay somewhere else while the house is being repaired.
Other types of coverage include personal liability and medical payments. Medical payment coverage means that if a guest of yours gets injured on your premises, the renter’s insurance will pay for their medical expenses. But what if the guest got injured because of your negligence? That could cost you a fortune. This is where the personal liability coverage kicks in. The renter’s insurance will also protect you against these liabilities up to the limit you choose.
Coverage Types and Limits
When you go shopping for renter’s insurance, you’ll find two kinds of personal property coverage plans— actual cash value and replacement value. In actual cash value, you receive the estimated value of your belongings after depreciation. But you’ll probably have to put in your own money as well because this amount will most likely be insufficient if you want to replace the item with one of comparable value. In case of replacement value coverage, however, you’re paid the actual cost of replacing the possession. For this reason, replacement value plans have higher premiums than their counterpart.
In addition to choosing a coverage plan, you’ll also have to choose the coverage limit for your claims. To choose the right limit, it’s best to estimate the value of all your possessions by making a home inventory. This way you can select the limit that best fits you.
A very important point to remember is that a renter’s insurance policy doesn’t offer coverage for all your possessions. Items like jewellery and business properties such as work laptop are examples of belongings that may require additional coverage. Another consideration to keep in mind is that a deductible amount, typically between $500 and $2500, has to be paid when you make a claim. This amount is usually tied to your premium—lower the premium, higher the deductible.
Get your Renter’s Insurance now!
A renter’s insurance protects you from many potential losses and liabilities that would otherwise be very costly if you were to pay from your pocket. Making a comprehensive inventory of all your belongings will show how you can’t afford to replace everything. So, protect yourself and your personal properties against potential losses and get in touch with an insurance company right away.
Manatee Insurance Services, Inc. offers a wide variety of coverage and deductible options in Florida, Sarasota, Bradenton and Manatee County. From auto insurance to flood insurance, we have it all. Visit our website to find out about our insurance quotes, or you can call us at (941) 747-7283.