Renters Insurance: What are you Really Covered For?

by Site Manager on January 20, 2015

renters-insuranceRenter’s Insurance Rates – What are you Really Covered for?

As more and more individuals lose their homes to foreclosures or downsizing, based on financial motivations, due to the economic downturn, the demand for information pertaining to renter’s insurance rates is dramatically increasing. Based on the latest facts and figures as it pertains to foreclosures, every 1 in 1153 homes in the United States are impacted, with the top states in foreclosure being New Jersey, Maryland, Florida, Illinois, and Nevada. Most homeowners have a mortgage, which requires them to carry homeowner’s insurance. For renter’s, the choice to carry renter’s insurance is theirs. Many individuals that were once homeowners, but, have had to turn to renting – as a result of a foreclosure – may elect to forego obtaining renter’s insurance. For most, this comes as a result of financial complications and uncertainty. If you have recently started renting – as a result of losing your home, or simply because you have not yet elected to purchase a home – it is imperative that you understand renter’s insurance rates and what the rates really cover. In addition to being in the “know”, this will allow you to ensure you get the best rates possible. In this guide, you will learn what renter’s insurance rates cover and how to get the best cheap renter’s insurance.

What is Renters Insurance?

In order to understand your renter’s insurance rates, you must first understand what renter’s insurance is and how it works to protect you. Many individuals are under the misconception that insurance is not required if they are subletting a property; however, while it is true that the property owner does have to maintain insurance on the property itself, these individuals are not required to carry insurance that covers the personal property of their tenants. In fact, most insurance policies obtained by landlord contain absolutely no coverage for the property of the tenants. Renter’s insurance is a special type of coverage that protects your personal property should it be subjected to damages, theft, and other complications which could destroy it. Examples of the types of property protected include – but, are not limited to – clothing, electronics, jewelry, furniture, musical equipment, sports equipment, and items that are similar in nature. While it is possible to get cheap renter’s insurance that will cover all of the most important personal property that you possess, you must ensure that you read the fine print of the property to validate coverage.

Your Policy and Your Renters Insurance Rates

In order to get the best renter’s insurance rates, you must evaluate your policy to ensure that you obtain only the coverage that applies to you and your situation. First, you must ensure that the “named peril” aspect of your policy is appropriate for your situation and the area that you reside. Common “perils” include fire damage, lightning damage, windstorm coverage, smoke coverage, theft, vandalism, and water damage. In order to get cheap renter’s insurance, only opt for coverage that includes perils that are relevant to your needs and location. Opting for unnecessary peril coverage could increase the amount that you pay for your policy.

In addition to named perils, you must evaluate the liability protection and the extent of that protection on your policy. This covers the injury of another on the property in which you reside. It is advised that you carry this, if nothing else. However, you may want to opt for legal defense coverage should an accident occur. While this will increase your renter’s insurance rates, it will help in protecting you should someone get hurt while on the property. This should also be obtained if you own a pet. Medical payments coverage is also a good idea. This pays for any medical expenses for anyone injured on your property. Most cheap renter’s insurance does not contain medical payments. However, by not obtaining this coverage, you could find yourself at a huge financial loss should any injuries occur at the property you are renting.

Conclusion

Transitioning from home ownership to becoming a renter is a challenging endeavor. Not only are you suffering from experiencing one of the biggest losses of a lifetime, but, you have to face your new life, often with new financial challenges. You should always ensure that you review your renters insurance rates to make certain that you not only are getting the best, but that your coverage allots for potentially expensive complications. While many may benefit from cheap renter’s insurance, these policies may prove to be more expensive, in the long run.

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