One of the most common reasons that tenants give for not having renter’s insurance, is that the landlord already has an insurance policy on the rental.
What many tenants don’t realize though is that while a landlord’s homeowner policy may provide coverage on the rental, it rarely extends to provide coverage for the tenant’s personal belongings.
This is where renter’s insurance comes in.
What Does Renter’s Insurance Cover?
Renter’s insurance provides coverage for tenants. It generally covers damage or loss of property due to fires, storms, utility malfunctions, vandalism, theft, and much more. Tenants can choose the extent of your coverage when selecting their policy.
Renter’s insurance also provides tenant liability coverage. Tenant liability is valuable coverage in case someone becomes injured on the property that the tenant is renting. Even if the tenant isn’t directly at fault, they could potentially still be held liable in court. Renter’s insurance is valuable protection in case of a lawsuit.
Be Prepared: Precautions to Take When Insuring Your Personal Property
Having sufficient documentation for all of the insured items allows tenants to be certain that they will get back everything they are expecting.
Save receipts for items, and keep photos of the important things. Make sure there are multiple copies of the documentation. It’s best to keep a copy of this documentation at a friend or family member’s house, so that it is not lost in case of extensive damage to the rental.
While not every detail has to be documented, having photos, receipts and a general outline are helpful, and can expedite the claims process.
Like most insurance policies, some things are not included in a renter’s insurance policy package. When taking out a renter’s insurance policy, it’s best to talk with your agent to make sure you are covered. Generally, floods are not covered under renter’s insurance policies, though additional flood coverage is available.
Don’t assume that your belongings are covered under your landlord’s policy. Most landlord’s policies do not provide coverage for tenants’ personal property. If you are renting, talk with your insurance agent today to find out how you can be sure that your belongings are covered under a comprehensive insurance policy.