Whether you are a renter or a homeowner, you invariably have possessions in your home. These include laptops, PCs, TVs, furniture, cutlery, crockery, linen, artwork, and all manner of other personal property. Personal property coverage goes by several names, including Contents Coverage. This form of coverage is effectively comprehensive insurance provided for the loss of property within a building, an office, an apartment, condo, or a home. In the event of ‘perils’ such as wind damage, fire damage, or burglary, policyholders may be eligible for payouts on their losses.
Renters insurance is increasingly popular among tenants. For many folks, the option to purchase their own property is a distant dream, making rentals the go-to option. Renters insurance can be applied to any sized dwelling, from a studio apartment to a sprawling mansion. When disaster strikes, renters insurance can safeguard your assets (personal possessions) with overarching coverage on losses. It doesn’t matter whether you are a homeowner or not; renters insurance covers you in the event of many unforeseen circumstances.
There are many different components to renters insurance, notably property damage incurred by visitors to the home, personal liability protection, limited medical coverage for injuries sustained on the property, and insurance coverage for personal property. According to industry aficionados, a renter is 25% more likely to be a victim of crime than a homeowner.
What Does a Typical Renters Insurance Policy Cover?
Renters insurance coverage a.k.a. home-apartment coverage is also applicable on a range of other insurance options such as earthquake coverage, flood damage coverage, drain backup coverage and the like. For the most part, insurance coverage is applicable to a range of options including burglary, vandalism, smoke damage, lightning, fire, hail, storms, ice and snow, falling objects, freezing, and the like. It is possible to mitigate out-of-pocket losses by applying for insurance coverage for personal possessions. Personal property insurance is readily available to renters, despite the fact that most renters don’t even know it exists. It goes by the term Coverage C on a homeowners insurance policy and covers everything that a renter owns.
To get an idea of what is covered, consider turning your apartment upside down and seeing everything that falls on the floor – that’s the stuff that is covered. The insurance policy is designed to guard against the loss of assets by providing financial compensation to the renter or homeowner. With any homeowners insurance policy, it’s important to know what’s covered and what’s not. To this end, there are important coverage terms and conditions that must be specified on a contract. Whether you are married, single, or cohabitating, it is possible to specify a beneficiary as an ‘additional insured’ for it a nominal fee.
Exclusions: An Important Component of Insurance Policies
Of course, every insurance policy has exclusions. If they covered everything, premiums would be too high because payouts would be excessive. There are certain possessions which are not included such as vehicles, pets, and anything that hovers or flies in the apartment. Other exclusions with renters insurance include possessions owned by third parties or the homeowner.
Luckily, the list of perils which is covered pretty much takes care of the main sources of property damage, theft, or loss. If there is jewelry locked away in your property, specific limitations are in place, and this may necessitate additional coverage options with higher premiums and higher loss limits. For the most part, personal property coverage hovers around $10,000 – $30,000, since this is the standard figure for most renters and homeowners.
Of course, if you have a large property filled with personal possessions you will want extra coverage. Any intentional destruction of your own property is not covered by an insurance policy. Renters insurance and homeowners insurance covers children under the age of 24 who are currently in college. Provided they are full time students, they are covered. If not, they’re not covered. It’s important to read the terms and conditions of a homeowners insurance policy or a renters insurance policy to see what type of household insurance coverage is provided. This will immediately clarify which relatives qualify for coverage under your policy.
It may be better for different relatives or roommates to have their own homeowners insurance or renters insurance policy to protect them in the event of loss, or damage. Pet owners cannot claim from insurance policies if their pets destroy their furniture and possessions, but liability insurance for damage caused to others, or outside of the home provides protection. And that’s the short and sweet of homeowners insurance and renters insurance, liability protection, and exclusions. As always, it’s wise to consult expert sources for more information on the ideal renters insurance policy.
