Renters insurance is designed to protect a tenant with costs associated with damage to personal property, medical costs, and liability costs. However, more than half of renters actually have renters insurance. Insurance allows tenants to have peace of mind in the event of serious disasters, but it is vital to read the policy prior to making a claim.
What is Renters Insurance?
Insurance policies for renters are designed to protect them from personal property damage costs. Anyone renting a property can obtain an insurance policy as they work similar to a homeowners insurance policy. Renters insurance plans do have some differences that are vital to understand:
- Renters insurance does not cover the actual structure where the tenant lives. Building damage falls to landlords to cover the costs.
- Renters insurance is fairly inexpensive compared to homeowners insurance policies.
The policies change with various insurance companies, but there are some similarities found below:
- Personal property damage. Personal property that is damaged can be claimed on the policy as long as it falls under covered peril.
- Liability. If a person is injured in the dwelling of the tenant, the tenant can claim this on their insurance policy due to negligence.
- Medical costs. Medical costs coverage are offered if an individual is injured and needs medical treatment. Insurance will help to protect tenants from serious financial problems based on the insurance coverage limits.
A comprehensive insurance policy is designed to cover the costs associated with replacing belongings. Clothing, furniture, computers, jewelry, and more. A basic policy will reimburse the tenant for the loss of property if it has been stolen or destroyed. Some of the reasons when an insurance provider will consider a claim valid is due to the following events:
- Hail damage
- Wind damage
- Smoke damage
- Water damage from faulty appliances
- HVAC or plumbing system failure leading to floods, fires, etc.
Each insurance company has their own standards they follow. Tenants need to read the policy to ensure they are covered for all the issues that could arise while renting the property. A property management company can assist in helping landlords and tenants with information related to insurance needs.
How Much Insurance Do I Need?
To determine what insurance limits are needed, take an inventory of everything. It is found that most renters own about $20,000 of personal property. Estimating the costs of all assets and property allows for a better estimate of the amount of coverage needed.
Learning about renters insurance and what it covers can assist tenants in their ability to properly cover themselves. Keyrenter Property Management in Austin provides assistance to landlords and tenants with information regarding insurance and more.