Just because you don’t own your home doesn’t mean you shouldn’t have the same kind of protection afforded homeowners by the right insurance policy. Smallwood Insurance helps renters protect their assets too.
Why You Need Renters Insurance
Renters insurance isn’t usually required, though some lessors will include a provision in the lease agreement that requires lessees to have a policy. We advise getting covered regardless. That’s because some renters make the mistake of thinking they’re covered because the property owner carries landlord insurance. Make no mistake; that’s for his protection, not yours. If you want to limit your liability, or your financial exposure in the event that something goes wrong, you should have renters insurance.
Renters Insurance Coverage
There are many types of homeowner’s insurance, and while renters insurance falls under the same umbrella, it differs in some key respects. The HO-4, or tenant’s form, offers personal liability protection and coverage for personal belongings up to a certain dollar amount. However, a more comprehensive degree of coverage is likely to rely on the inclusion of riders (a topic we’ll revisit later).
Regarding levels of coverage, the types involved are typically similar to those offered to homeowners. An inexpensive insurance policy will typically offer some degree of liability protection (in case someone is injured in your rental property), as well as replacement values. These may include policies for actual cash value (value less depreciation) with a low cap and a high deductible, or more comprehensive levels of protection with a lower out-of-pocket cost for deductibles but higher premiums.
Do I Need an Insurance Agent for Renters Insurance?
The answer here is a qualified “yes.” Most of us aren’t just insuring an apartment or a rented house. If you own or lease a car, own a business, or have a life insurance policy, one good way to save is by bundling your renter’s insurance policy with another policy like your auto insurance. Working with an agent means having someone with the experience and knowledge to tailor a policy or bundle of policies that maximizes coverage without cutting corners.
Understanding Your Coverage
A key part of getting the right renter’s insurance policy is being able to differentiate between covered losses and items not covered by the core policy. Liability coverage may be limited. Likewise, flood damage and water damage coverage can range from limited to nonexistent. There will be caps and limitations for personal property, meaning that actual cash replacement value may not be covered.
Adding Insurance Riders
The addition of insurance riders can extend both the dollar amount and types of coverage, which is good news if you’ve accumulated high-value items over the years, or if you live in an area that’s flood-prone.
Finding the Right Renters Insurance
Renters insurance is important, but the right renters insurance is absolutely vital. If you’re renting a house or apartment, get a renters insurance quote from Smallwood Insurance for help protecting your home and the life you’ve worked so hard to build.