Are you, as a renter, under the illusion that your landlord’s insurance plan will also cover you and your belongings too? We hate to break it to you, but that is unfortunately just not the case. Any policy that your landlord has will cover the protection of the building, his property, but will not include his tenant’s personal belongings and may not even cover injuries or accidents sustained on the premises.
For this reason, you will need your own renters insurance. Rental insurance is a policy that protects your personal belongings and property within a rented apartment.
What is renter's insurance?
Even though your landlord has his own insurance policy you will need specific renter insurance that will protect against fire, theft, water damage and lost or damaged belongings including electronics, furniture, clothes, etc. It works in the same way as homeowners insurance in that it can also have protection against liability – if someone gets injured on your rented property your renters insurance will answer to that. It also covers against the following:
- Weather conditions like windstorm, hail, lightning (not however flood water or earthquakes).
- Frozen or damaged water system
Personal property will be covered by most general standard renter’s insurance plans, but you should be aware that some types of property will have a maximum payout in case of loss or damage, such goods as jewelry and furs and some electronics. For expensive personal belongings, you should start to consider taking out an extra policy.
If a person, who is on your property, sustains an injury and needs medical assistance, your rental insurance may also cover the costs of medical fees and legal fees in the case of being sued. Liability coverage will also cover any accidents or mishaps that you may inadvertently cause – if you absentmindedly leave the bath running and the water flows down into your neighbor’s house you might be liable for the damage…not a nice scenario if you have to fork out money for damage and maybe legal fees to boot!
Some renters insurance will also have the option to cover temporary accommodation – if for any reason you cannot live in your house, due to damage caused by fire, or faulty plumbing – your policy might cover the cost of temporary accommodation.
In some cases, rental insurance will cover damages for lost items from your car.
How much renters insurance do I need?
Renter’s insurance can be expensive, so you only want the minimum amount you need. Here are some ways to get an idea of how much renter’s insurance you may need.
- Determine your assets and liability. You may want to do a complete inventory of your possessions to determine the age and cost of each of your possessions. You may also want to determine if you’re more likely to have someone injured on your property. If you entertain regularly, that could increase your liability. You want to determine your assets to figure out what you need to cover, and you want to find your liability to know how much coverage you should have.
- Choose the right policy. There are standard renter’s insurance policies, but you can also look into bundling options. Some insurers can combine monthly premiums, and that can be a good option to get the right coverage. You also want to get a good idea of what the deductibles and premiums are for the policies. You will want to choose the lowest premiums for the minimum amount of coverage you need.
These are just guidelines. The best way to figure out how much you might need and pay for renter’s insurance is to get insurance quotes. Quotes are the best way to find affordable renters insurance.
What factors affect the cost of my rental insurance?
Everyone has a budget and personal financial situation. As consumers, we are always on the lookout for the best option with the least amount of limits that won’t break the bank. With rental insurance, you want cheap renters insurance but at the same time you want those special belongings to be fully protected and you want to have proper cover for liability and damage.
What will influence the premium that I have to pay? There are many factors that determine the cost of your renter’s insurance – including:
- The amount of coverage you need/want will obviously influence the cost. Most advisors will lean towards what is known as a fixed replacement cost – this total will be the amount needed to cover everything in the event of serious damage like a fire.
- Replacement cost. If this cover is chosen and added to your policy then your premium will be higher – but the advantage is that in the case of a total loss you will be completely reserved covered for the specified amount.
- The deductible is the amount of money you have to personally pay in the case of a claim before the insurance company starts to payout. It will influence the cost of the policy a lot. The lower your deductible the more your premium will be.
- Insurance services companies weigh up all the risks involved with insuring you or your property. Things like location, age of the building or security devices installed will increase or decrease your policy.
One thing is for sure that you should shop around before signing a policy – prices vary and offers to vary. Be careful about trying to save money by undervaluing your belongings – in the event of a claim you would be short – or overestimating the value as this will increase your premium.
The best advice for affordable renters insurance is to put your trust in a reputable company and get advice on what policy best suits your needs. At InsuranceQuotes.com we have a large team of highly qualified experts who know every nuance of every insurance policy in the land.
Don’t take risks when it comes to protecting yourself, your rights, your home, and your belongings. Call us now for information on how we can help you or go online to request cheap rental insurance today!
Updated: July 13, 2020
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