Renters Insurance Policies
Homeowners are required to purchase insurance to protect themselves and the financial institution that holds their mortgage against any type of property damage or loss. While most landlords don't require their tenants to carry insurance, it might still be a good idea for consumers who are looking to rent an apartment.
What is Renters Insurance?
This type of insurance is very similar to homeowners insurance, and comes with the same benefits. The only difference between this type of insurance and insurance that is purchased by homeowners is coverage for the actual dwelling. The landlord is responsible to cover the structure you live in but bears no responsibility for your actual belongings.
This is where insurance for renters comes into play. With this type of insurance, your personal belongings (including furniture and all personal property within your unit) is covered in cases of theft, fire, flood and other similar instances.
Who is This Insurance For?
Rental insurance is geared towards consumers who rent a property. Whether it be a condominium or house, rental insurance covers every piece of personal property within the policyholder's dwelling. In some cases, rental insurance is a requirement before a tenant can rent a property. This is often done to protect the landlord from any lawsuits in the future.
How It Works
When an incident occurs at a policyholder's property, the insurance company will perform an extensive investigation into the causes of the incident and the individuals involved, if any. In most cases, the insurance company will also ask for a detailed report of items that were stolen or are now damaged, and a report from the police or fire department.
Once they have concluded their investigation, a specialist will make a determination about how much money, if any, will be released to the policyholder for compensation and replacement of the damaged or stolen property.
Different Types of Coverage
Liability insurance is the major type of coverage in a rental insurance policy. In cases where the landlord requires rental insurance, the policy is used to cover any minor damage to the property that is caused by the tenant.
Regardless of the neighborhood or area in which you live, renters insurance comes with many great benefits.
- Protection against disasters - From floods caused by plumbing issues to electrical fires, your personal property is always at risk. Rental insurance covers you in most situations.
- Theft protection - Theft can occur anywhere, and when it does, your property is covered if anything is stolen.
- Peace of mind - Personal property value can be in the tens of thousands of dollars. You'll have peace of mind knowing you won't have to purchase new items with your own money when you have rental insurance coverage.