In most states, insurance on various items or properties are required. This is to protect third parties in the event of accidents. There are thousands of types of insurance products for both business and personal insurance. To protect those dwelling in apartments or other residential properties, renters insurance is the best insurance policy to invest in.
Renters insurance is an insurance product which is not required in most states but is recommended for renters. This type of insurance is ideal for either apartment or house renters. Along with protecting personal items, renters insurance also covers temporary liability and housing protection. For example, it covers medical expenses if someone gets injured on the property. The renter’s protection also covers the lawyer’s fee, if the policyholder is sued by the person unintentionally injured.
Some renters would argue that there is no need to get coverage. However, most leases state that the property owner is not responsible for different types of damages. The reason is that there is no liability on the landlords to compensate for indirect loss caused to the renters, due to direct damage to the property. For example, if the property caught fire due to short circuit, the landlord will bear the cost of reconstruction. In most cases, renters cannot recover for damages, other than medical payments. Moreover, the renters are not provided alternative accommodation in the case of property reconstruction. Along with personal property coverage, renters insurance will also provide protection against the damages caused to others and their properties.
There are certain things to be considered before purchasing renter’s coverage policy. The insurance company will determine the price of the policy based on the fixed amount of all the possessions held by the renter. Hence, the price of the policy depends upon the coverage purchased by the renter. The deductible is another factor to consider while buying renters insurance. The insurance coverage that is subject to deductible would protect everything but the liability coverage, like paying medical expenses for a person injured due to the renter’s fault.
Choosing replacement cost coverage or actual cash value coverage will determine the nature of renter’s policy. A basic coverage plan only pays actual cash value of the possessed items. It is the property’s worth at the time of loss. Instead, replacement cost coverage will protect the renter to the extent of actual replacement. For example, a damaged sofa set purchased 5 years ago will be replaced by the new sofa set. However, precious items, like gems and jewelry have limited protection. Therefore, these items should not be included in the renter’s policy. A separate policy should be purchased for them.
The cost of renters insurance also depends upon the rental location. If the location has a history of thefts, the policy would cost high. Whereas, on rental locations highly secured of thefts have low cost of coverage. Similarly, if the location has a history of heavy claims filed by the previous renter or the neighbors of the property, the policy could have a high cost of coverage. In most of the cases, renters do not consider taking renters insurance because of the worth of personal property they have. Even then, having renter’s coverage will be a good option to protect liabilities.
Renters insurance is a great investment and will cover you in the case of a home fire, or something else that would be detrimental to the property. Get a free renters insurance quote online today!