Compared to the majority of homeowners having home insurance, only about 20% of renters have rental insurance. This leaves many renters exposed to sudden accidents without any protection. One of the main reasons is that many renters are unaware of what a renters insurance actually is. This article will go over the basics of what a renters insurance is and answer some commonly asked questions.
I’m renting a single-family home. Why do I need renters insurance when I don’t own the property?
Renters Insurance provides personal property and liability coverage. If you were to lose your belongings such as clothes, furniture or electronics in a fire, a renters insurance will help you cover the costs. Another case would be when you are responsible for someone’s injury while at your place. Liability coverage will help cover legal expenses and medical costs. In addition to these 2 main coverages, renters insurance provides more coverage options such as Loss of Use.
Why do apartment buildings require renter’s insurance?
Apartment complexes carry their own insurance. However, it only covers the structure of the building they own. It doesn’t provide coverage for your personal belongings or personal liability claims. If you accidentally damage the property that you are renting, the tenant is responsible to compensate for the loss. For example, if the stove that you left unattended results in a fire that damages the whole property, you will be the primary person to pay for the damages.
How is the price of renters insurance determined?
Renters insurance is one of the cheapest insurances that you can buy. This is because a renters policy doesn’t insure a physical property. In other words, it mainly covers your personal property and liability. Premiums are affected by location, year and construction type of the place you rent. In addition, the amount of coverage for personal property and liability coverage are also a factor.
What should I do if my property is damaged in a sudden accident?
First, contact your agent and explain the situation. If damage to the house or your personal property is large, it is important to take “emergency” measures to reduce additional damage. For example, if the window is damaged due to a storm, board it up as a temporary measure to reduce further damage. If an extensive repair is needed, contact your agent so that an adjuster can inspect the damage. If the damage is minor, you can consult a contractor to get an estimate on the repair before deciding to contact your insurance company.
What is Personal Liability Coverage for Renters Insurance?
Personal liability protects you when you are liable for someone’s injury or loss of personal property. It helps cover medical costs and legal expenses. If someone brings a claim or lawsuit against you, it is recommended that you consult with your insurance agent.
Can my insurance company cancel my policy?
Insurance companies normally do not cancel policies mid-term. However, if you fail to make payment, or purchased insurance based on false information, the company can cancel your policy. The guidelines may differ based on state, but most insurance companies notify you 30 days before expiration on renew or non-renew.