When you rent a house, there are two kinds of insurances you should pay attention to. One is landlord’s insurance and the other one is renter insurance. The former one is there to oblige the lenders to insure the building and make repairs in time. However, if a natural disaster hits your house or a thief break into your apartment, it’s time to turn to renter insurance.
Renter insurance is also known as tenant insurance or HO-4 policy. It covers the following aspects.
- Personal property.
Renter insurance allows renters to take reimbursement if their personal property is destroyed due to 16 specific events, such as natural disaster, theft and sudden accident. In this case, renters have two reimbursement options: replacement cost policies (repay renters’ loss with the actual cost) and actual cash value policies (repay renters’ loss based on the time their belongings were destroyed or stolen).
Note that if renters have valuable items like jewelry, they need a rider or an endorsement to get certain reimbursement and the renters need to purchase it specially.
- Additional living expenses & loss of use
Renter insurance will pay for the living expenses when then renters’ house needs repairs, such as hotel bill.
- Liability insurance
If renters or their pet hurt someone in their house or even outside, they may be sued and will face a devastating indemnity. Under this circumstance, renter insurance will help renters with legal representation coverage and no-fault medical payments coverage.
To figure out how much renters need to get renter insurance, they should check their personal property and decide how much coverage they need. After that, it is better for them to see around three or more companies and talk about their needs. Generally, renter insurance costs $15 to $30 a month and renters can always choose to raise their deductible to save money
Who need renter insurance?
Renter insurance is an inexpensive tool to protect renters’ belongings and liability. It is even more helpful for the following renters.
- Renters with a pet
In U.S., if a dog bite someone, it could cost nearly $35,000. However, with renter insurance, renters can be saved from this problem.
- Rich renters
Wealthy renters usually have more valuable personal belongings, such as cash and jewelry. With a renter insurance, their potential loss can be covered, not only from financial ruin but also from unexpected disaster.
- Renters forced out of their homes
If your house is damaged by fire or smoke, renters without renter insurance have to pay for all the bills during this period of time, such as the cost of living in a hotel, eating in a restaurant or transportation. If you have renter insurance, all of these costs will be covered until you come back home or find a new apartment.
- College students living off campus
College students who live in the dorm are normally covered under their parents thus they should purchase a renter insurance if they live off-campus.