What is Renters Insurance?
People who rent an apartment, condo or home are not protected by the landlord when it comes to personal belongings. Additionally, tenants are held liable for certain accidents that occur inside a rental property. Insurance for renters provide financial security for an array of potential problems that can occur inside a leased unit.
Who it is For
A person who leases a residential property from a landlord has the option to purchase rent insurance. Only an individual who is officially listed on a contract is allowed to purchase this particular type of insurance. Illegal tenants and their belongings would not be protected at all under this policy.
How it Works
Insurance for renters is supposed to coincide with the duration of a lease. However, tenants may choose to make the policy expire before the actual lease terminates. All of the personal possessions that are held in the insured property should ideally be listed on a detailed inventory. This type of document can be submitted to an insurance agency in order to speed up potential claims. Photographic evidence and original receipts are helpful in processing claims for tenants who lose possessions. Expensive items like antique furniture and music instruments may be appraised by experts, since such things actually increase in value over time.
Different Types of Coverage in Existence
Renters insurance may be used to fund the replacement of valuables that have been damaged by a variety of reasons including man-made accidents or natural occurrences. Vandalism, fire, thunderstorms and hurricanes are some reasons that may damage items beyond repair. If something is stolen, it can also be replaced based on a fair market value as assessed by an insurance agency. Optional features in this insurance plan allow customers to receive money for temporary housing due to an apartment or home becoming uninhabitable.
With insurance for renters, jewelry and other expensive items are fully protected against loss regardless of the reason. Personal injury lawsuits are also covered under this type of insurance policy. Otherwise, legal actions relating to a slip and fall can result in tenants being liable to pay large settlements.