Renters Insurance Coverage Benefits & Considerations

Posted: December 17, 2018

Renters insurance is a valuable option for certain people, and it could potentially save you thousands of dollars when you need it most. Learn more about this policy, how it works, and who may benefit most from this type of coverage.

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Do You Need Insurance As A Renter?

There are many situations where opting for renters insurance may be beneficial. For example, perhaps you’re renting an apartment near your college and want to cover the thousands of dollars’ worth of electronics you keep in your room. These policies can give you peace of mind that your belongings are protected against theft, structural damage, and other unexpected problems.

How Can Renters Insurance Benefit You?

Items like laptop computers, flat screen TVs, and personal heirlooms may have significant value. With renters insurance, you can pick a total coverage value that works for you, and cover your belongings with one affordable payment. Follow these tips to help you get the most out of your policy:

Keep A Record Of Your Valuables

Keeping a written record of your valuables makes it much easier to prove ownership of them when something happens. Plus, it’s an easy way to track the value of these objects, making it simple to determine the total amount of coverage you should get.

Understand The Limits Of Your Coverage

Renters insurance is useful for the right people, but like any plan, it has its limitations. One of the smartest things to know about your policy is what it does and does not cover. Typically, if there’s a separate type of insurance that covers an event or disaster, it won’t also be covered under renters insurance. For example, structural damage caused internally may be covered, but earthquakes might not, especially if earthquake insurance is offered as a separate option.

There Are Different Types Of Coverage

You may have an Actual Cash Value policy or a Replaceable Value policy. Each comes with its own rules and advantages. The Replacement Value policy is typically the more expensive of the two types, and it’s characterized by the fact that depreciation is not factored into the amount paid in the claim.

The Better You Know Your Plan, The More Prepared You’ll Be

Whether it’s a sudden automobile accident that causes damage to your apartment or a pipe that freezes and ruins thousands of dollars of your belongings, it’s crucial to know as much as possible about your plan and what it does or does not cover. It’s far better to know the details of your plan before an emergency happens so you know exactly what to claim. Contact an experienced agent who can discuss the details of these policies with you.

What Do These Policies Cover?

These policies can cover your personal property within the home or building you are renting. But what you may not have known is that these policies can also extend beyond the premise, covering property stolen from your car. In the event of fire, smoke, lightning, vandalism, or water damage, your property may be covered. Be sure to check the details of your policy for specific coverages. Note that flood damage is not often covered with these policies.

In addition to property, most renters policies also include liability coverage. This type of coverage protects you in the event that you are responsible for injury or property damage to others on premise. It can cover legal fees and other expenses.

Should You Require Insurance When Renting Out Your Property?

If you own property that you intend on renting out to tenants, it’s a popular option to require that your tenants have appropriate insurance. Requiring renters insurance offers several advantages as an owner or landlord, including:

  • Decreasing the blame that tenants can put on you for damaged property
  • Filtering out tenants who wouldn’t qualify for an insurance policy
  • Fulfilling much of the responsibility that may otherwise be on you to compensate for losses

Protect Your Assets With King Street Agency

Renters may have significant assets to protect. If left uncovered, they could be leaving themselves vulnerable to a major financial setback. If you have personal belongings that you wouldn’t want to see broken or lost, consider renters insurance and gain the peace of mind that comes from knowing your valuables are covered. Our specialists at King Street Agency in Charleston, SC can answer many of your questions and help you determine the optimal level of coverage that’s right for you.

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