Many renters are under the assumption that they’re covered under the landlord’s homeowner’s insurance policy, but that’s simply not true. A homeowner’s policy covers the building itself but not the contents (everything you own). To cover your personal belongings, you will need renter’s insurance.
Renter’s insurance works in much the same way as Auto Insurance Plymouth MI. f your home is destroyed and you lose everything, renter’s insurance will cover your losses and help you get back to a normal life. If your home is burglarized and your belongings are stolen, you’re covered for just a small monthly premium. It covers items such as clothing, electronics, art, appliances, jewelry and furniture; most policies have up to $25,000 in coverage. A renter’s insurance policy protects you from loss or damage due to:
- Fire
- Lightning
- Hailstorms
- Explosion
- Plane crash
- Riot or civil unrest
- Vehicle damage
- Smoke damage
- Theft
- Vandalism
- Falling objects
- Damage from hot water heaters
- Frozen pipes
- Sleet, ice and snow
- Short circuit
It’s important for you to know that most renter’s policies don’t cover you in the event of flood damage. Flood and/or earthquake insurance must be bought separately. However, if your home becomes untenable due to other kinds of water damage, renter’s insurance can help you pay for temporary living arrangements.
Like a homeowner’s policy, renter’s insurance almost always includes some degree of liability coverage. If someone is hurt while in your home, you are covered; if litigation is brought against you, your insurance policy pays judgments up to your coverage limit.
Renter’s insurance can be bundled with other coverage such as Auto Insurance Plymouth MI to help you save money. When buying Renters Insurance, you’ll need to decide on either actual cost or replacement value coverage. Actual cost will pay you the depreciated value of your belongings; replacement value will pay you whatever it takes to replace your lost items with a comparable item. Replacement value policies are more expensive, but you’ll have more coverage in the event of a total loss.
Many people think they don’t need renter’s insurance and that they will be covered under their landlord’s policy, but that is not the case. In the event of a catastrophe, your rental home will be covered, but you can lose everything you own if you’re not covered. Renters Insurance is an easy and relatively inexpensive way to protect your investment and your belongings.
