Knowing Renter’s Insurance – Obligations, Benefits, and Questions

Renter’s Insurance, also known as Tenant Insurance, is an affordable collection of Insurance covers designed to protect personal belongings, certain liabilities, and temporary relocation of the renters in case of disasters that destroy or make the living unit uninhabitable.

Considering the growing incidents of destruction caused by extreme winds and fire; if you are renting your home it is advisable to consider Renters Insurance.

There is a common misconception that the owner of a house is liable for any destruction of a renter’s belongings. The truth is, the owner is only responsible for the house, fittings, and appliances rented out, no matter the insurance policy on the property.

What are the obligations of the Renters Insurance coverage?

1. The financial protection given by the insurance is for the destruction of personal property by any natural disaster like fires, lightning, volcanoes, wind storms, or hail. Any damage or loss caused due to unexpected incidences like theft or vandalism, collision by a vehicle, falling objects, or damage incurred due to frozen pipelines is also covered.

2. The Renters Insurance could compensate the loss of the following as per existing coverage limits:

  • Replacement or repair of personal property, like, clothing, toiletries, electronics, dishes,  owned furniture, furnishings and beddings, kitchen appliances, health, and hobby equipment.
  • Car theft or loss of items from vehicles or homes, theft or vandalism of electronics or items kept in your vehicles or house.
  • If your home becomes uninhabitable, the cost of hotel bills, food, and additional living expenditure till your home is repaired or rebuilt.
  • Personal liability if a person visiting gets injured in your home. The coverage will pay for medical and legal fees incurred once your responsibility is proven.

3. The Renters Insurance does not cover the following:

  • Damage or destruction to the house you are renting.
  • Damage to fixtures and built-in appliances rented with the house.
  • Damage to the personal belongings of a roommate
  • Damage in an accident or theft to vehicle and parts fitted in it
  • Coverage to expensive collectibles or valuable jewelry
  • Damage to any small or home business goods and items
  • Use or ownership of any personal car, motorboat, or aircraft
  • Damage from pests, termites, or bedbugs

The Benefits of Renters Insurance Policy :

  • This insurance serves as financial support to replace your personal belongings while going through the difficult time of having lost or damaged everything.
  • It provides an immediate backup to restore your living situation due to the loss of a home by fire or any other natural calamity. Expenses of daily necessities, hotel and food bills of alternate living arrangements are also taken care of.
  • Loss or theft of personal items like luggage, a laptop, or a phone from your home or vehicle can be traumatic as your safety feels violated, along with loss of data. The insurance support eliminates the stress of funding purchases of new items.
  • The liability clause supports you and your guest in case of an accident, injury, or fall, or any incident with household pets at your home, with access to coverage of medical and legal fees.
  • Homeowners sometimes insist on renters insurance to safeguard themselves against the hassle of any future legal liabilities in case of disasters. A tenant providing proof of renters insurance is a more preferred tenant.
  • Damages to rented furniture included under the coverage inside your home, are compensated, reducing the stress of having to pay back for the same.
  • If you have children, your personal property and furniture are more liable to face many damages! Renters insurance provides coverage for child-based accidents.
  • The insurance covers your spouse and children and includes your young adult children who are away at college.
  • Another benefit of renters insurance is that it is affordable! Some coverages start very low and are affordable to everyone, considering the price of replacing your things it is worth the minor expense.
  • The hidden benefit of Renters Insurance is you start small with a basic insurance policy as a tenant, and steadily your insurance history gets established, leading to a lower insurance premium when you purchase your first home.

Questions and clarifications:

  1. Do I require a Renters Insurance Policy?

If your landlord does not mandate it, it is your personal choice. However, it is a smart move for protection against loss to have the Renters Insurance, considering the benefits, the low premiums involved and the unpredictability of life today.

  • How much coverage will I need?

The best way to estimate the same is to start with an inventory of the items you own and arrive at their current value. If you own any valuable things, put a note and set aside to get appraised by our insurance provider for the requirement of a floater charge. Used items like clothing and bedding will be of lesser value than when purchased thus the premiums and compensation for the same in a claim will be lesser. We can customize your policy to your needs and coverage.

  • Should I take the Replacement Cost policy coverage?

By taking this coverage the premium may be higher but, you will get a replacement cost on items lost without including the depreciation value. For example if your 2-year-old camera gets stolen, with Replacement Cost coverage you could get compensation to replace it with a current model of the same one or something similar.

  • Will the Renters Insurance cover every natural disaster?

Renters Insurance does not cover floods and earthquakes. If you live in a flood zone you should avail of flood insurance. Since flooding is a common occurrence today you can get in touch with us for advice and evaluation.

  • Is the Renters Insurance Tax Deductible?

Since it is considered a personal expense it is not Tax-Deductible.

 Get in touch with us to understand the details of Renters Insurance. When buying the Renters Insurance Policy it is essential to get adequate coverage against damages. Our policy advisors will politely address all your queries. Whether you need a basic policy or have additional needs, our evaluators will collaborate with you to arrive at solutions that work best for you. Being informed and aware is the first step to acquiring the correct insurance for your needs.