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Having renters insurance can help protect you and your family from a wide range of unexpected incidents. This type of insurance will cover damages to your personal property and bodily injury that may occur as a result of a fire or other disaster.
Personal property coverage
Whether you are moving into a new home or have recently moved out of your current home, your renters insurance policy can protect you against damages to personal property. Most policies will cover personal property up to a specific limit, but you may want to consider higher limits to ensure you have enough coverage to replace damaged or stolen property.
Renters insurance covers items inside and outside the home. It can also provide liability coverage. If you or your guests are injured in your home, your policy may cover the costs of medical treatment. Having liability insurance can protect you against lawsuits that may result from injury or property damage.
Personal property coverage can be purchased separately or as part of a renters policy. Your insurer may offer several discounts for multiple policies. You may also be eligible for a discount if you pay your policy in full within a certain amount of time.
Your renters insurance policy may cover damage to your property, but it does not cover items stolen from your car. If you are traveling, you may want to consider purchasing a separate policy that covers your belongings while you are away.
If you have a lot of expensive items, you may need to purchase an endorsement. Scheduled personal property (or "scheduling") provides special limits of liability on items of high value. This coverage is important for jewelry, art, and other high-end items. The cost of this endorsement may raise your premiums.
Additional living expense coverage
Whether you are forced to move to a new home or temporarily live elsewhere, you can receive reimbursement for your additional living expenses. This type of insurance is a standard component of most renters policies. The amount you can claim depends on the type of policy you have and the company you choose.
This type of coverage is usually provided under the "loss of use" section of the policy. It will reimburse you for expenses related to the loss of use of your home, like rent and other bills. It also pays for meals, hotel stays, and other extra living expenses.
It is important to keep track of all of your expenses. You may want to write down reference notes and keep a receipt for any big purchases. If you need to make a claim, keep the receipts for each expense and call the insurance company right away.
If you live in an expensive area, you may need to increase your coverage limit. You may also have a time limit on how long you can claim for the additional living expenses. Generally, it is 24 months, but some policies require a specific endorsement.
Some insurance companies will reject your claim if it is for an expense that is too great. For example, if you eat at a fine dining restaurant, you may have trouble receiving reimbursement for it.
Another important consideration is that additional living expense insurance won't cover your normal mortgage payment. In most cases, if you have to temporarily live elsewhere, you must continue making your mortgage payments.
Bodily injury
Obtaining a renters insurance policy is an affordable and convenient way to protect yourself and your possessions. You can choose from a variety of standard policies to fit your specific needs and budget. The perks of a renters insurance policy include coverage for your personal property, liability coverage, medical payments to others and additional living expenses in case you need to relocate. You may also choose to customize your policy with endorsements. The standard policy will replace the actual cash value of your personal property, including your furniture and electronics, should anything ever happen to it. Liability coverage is designed to cover the costs associated with damages to your rental property or the property of others in the event of an accident.
Most renters insurance policies have a number of limitations. Most policies are designed for single renters or couples with few assets to insure. For example, medical payments to others is often only a single claim per person per policy. Similarly, you may not be able to claim a monetary reward for theft of your personal property. You may also not be covered for damages incurred by you or your family members while they are occupying your apartment or condo. Renters insurance is also not intended for commercial use. So, if you are in the market for renters insurance, read the policy carefully. You may be pleasantly surprised at the policy's limits.
Earthquake and flood damage
Whether you live in a neighborhood that is prone to earthquakes or not, you should consider buying an earthquake insurance policy to cover your personal property. It may even cover your rent if your house is damaged by an earthquake.
Earthquake insurance is available from several insurers. It covers your personal property and other structures on your property. It also covers the cost of living in an alternate location if your house becomes unlivable.
You can purchase an earthquake policy as an add-on to your renters insurance. You may also want to purchase a separate earthquake policy if you live in an area that is particularly susceptible to earthquakes.
You can find a policy through your local insurance agent. Some states may even offer financial coverage if you live in a disaster zone. You may also be able to get additional flood insurance coverage through a private insurer.
Most renters insurance policies don't cover earthquake damage. You may want to consider purchasing an add-on earthquake policy, as well as additional flood insurance. You can also purchase earthquake insurance through the California Earthquake Authority.
You should also consider purchasing Loss of Use coverage. This coverage will pay for alternative lodging for up to two weeks if your rental property becomes unlivable.
There are also special limits for personal property. Items such as computers, tools and pottery will have a special limit.
Mold
Unless it is caused by a covered peril, mold is not usually covered by renters insurance. However, the coverage may vary by carrier and policy. It is a good idea to speak with your insurance agent if you have any questions.
It is also important to keep in mind that renters insurance only covers your personal items. If you have structural damage to your home, it is your landlord's responsibility.
In addition to covering your personal property, renters insurance should also cover your extra living expenses. This can include commuting costs, restaurant meals, and laundry. There may also be limits to how much the policy covers. These limits will apply to the amount you pay for rent and other expenses.
Some landlords also have to cover the cost of removing mold if it is caused by structural deficiencies. These costs may be covered by an endorsement from your insurance company.
Some insurers have a limited mold/fungi removal endorsement on their policies. This endorsement covers the costs of removing mold if it is caused directly by a covered peril.
Depending on your individual policy, there may also be limits to how much money your renters insurance will cover. Most policies will only pay out about two thousand dollars. However, some insurers may offer an endorsement that increases the limit to five thousand dollars or more.
You should also note that your renters insurance policy will not cover mold if you had caused the damage yourself. If you have a serious mold problem, you may be able to withhold rent or demand compensation for mold-related health problems.
Legal fees and medical bills
Buying renters insurance is often a requirement of a landlord. A standard policy will cover a few hundred dollars worth of personal property, the structure of your rental home, and up to $100,000 in liability coverage. In addition to these basic protections, your insurer may offer more specialized coverage, like a check forgery insurance or a policy to cover your belongings if you move out.
If you're not yet a renter, you may have never heard of renters insurance. If you have, you may not know what it covers or how much you're actually paying for it. A renters insurance policy may also cover the costs of living elsewhere while repairs are being made to your home, a feat that would be impossible to pull off if you were to live in a tent or a caravan.
A renters insurance policy can also cover a multitude of other costs above and beyond what you're paying for the actual property. For example, your insurer may cover the cost of a rental car while you're out of town, a night's stay at a local hotel, and even your restaurant meals. There are also policies that cover credit card fraud and a host of other miscellaneous costs.
For instance, if you've had your home burglarized, your insurer may be able to pay to have your personal belongings replaced, although the coverage is limited to about 15% of your personal property limit.