A renter’s insurance policy provides a renter with personal property protection much like a homeowner’s insurance policy provides a homeowner with personal property protection in the event of a loss sustained from perils such as: Fire, theft, civil commotion or riots, acts of God and accidental damage from perils related to electrical surges and damaged plumbing. A renter pays a premium to an insurance company and in turn the insurance company agrees to cover a renter’s personal property up to a certain dollar amount (based on the amount of coverage the renter needs as stated by the renter).
Once a renter pays his premium he will receive a declarations page from the insurance company listing the items that are covered under his renter’s policy. It will list the ways in which his belongings are covered and what perils (losses) are covered under the policy. As long as a renter pays his premium on time he has a guarantee that his belongings will be covered under the conditions listed on his declarations page.
There are two types of renter’s insurance. An HO-4 policy will cover renters in rented dwellings such as apartments and houses. An HO-6 residential policy covers condo owners in the event of a loss in much the same way that an HO-4 policy covers renters. Many people do not think of condo owners as renters but condo owners own their condos inward from the walls. A condo association carries coverage protecting the rest of the structure in the event of a major loss.
Renter’s insurance is not required by law, however; many landlords require a renter to carry it. Along with insuring personal belongings there are perks to carrying a renter’s policy. In addition to personal property protection inside the dwelling in many states a renter’s insurance policy offers protection on personal assets away from home. Often apartment dwellers will rent storage units in order to have increased storage. By purchasing renter’s insurance a renter will insure his belongings in storage units and elsewhere for up to 10% of his total policy coverage.
A renter’s insurance policy will also cover certain valuables such as jewelry and antiques. This can be done by placing a rider on the insurance policy. A renter will be compensated for the dollar amount stated in the rider in the event of a loss. Antiques and jewelry along with other valuables are replaced at actual cash value. Two perils a renter’s policy will not cover are floods and earthquakes. Insureds who live in hurricane or earthquake prone areas should understand how they are able to recover the value of their person belongings in the event of a loss due to these perils.
Renter’s insurance policies are inexpensive and easy to get started. Most often coverage will begin the same day. Its low cost, wide coverage and the peace of mind renters often receive when having renter’s insurance coverage makes renter’s insurance a must have for every renter.