The Nuances of Renter’s Insurance

Most people don’t care about insurance, particularly renter’s insurance. After all, everyone thinks they are the exception – that they won’t need renter’s insurance because “it” won’t happen to them. Most people think that renter’s insurance is an added cost to their long list of monthly expenses. Like most things, we never really think we need something unless it comes time to actually have it – just like renter’s insurance.

However, renter’s insurance is there to give the renter security in their rented property – something that we should all have. Having renter’s insurance is an essential part of financial soundness and mental well-being: financial soundness because it can help the renter avoid huge emergency expenses and mental well-being because having insurance gives you peace of mind. Renters should make provisions to include it as an important share of their monthly budget. Spending a few hundred dollars a year on renter’s insurance should help you avoid unexpected expenses amounting to tens of thousands on home repairs and legal fees.
Basic renter’s insurance should cover, but are not limited to, these points:

● Coverage from natural disasters.
This should be clarified with the renter’s insurance provider Ask whether insurance against flood is provided. You should also clarify which other natural disasters are included in the provision.
Most basic renter’s insurance will reimburse you for loss or damage to property in these events:

○ Fire and lightning
○ Windstorm and hail
○ Explosions
○ Riots
○ Damage by aircraft
○ Damage by vehicle (not your own)
○ Smoke damage
○ Vandalism
○ Theft
○ Volcanic eruption
○ Falling objects
○ Weight of snow, ice, sleet
○ Damage from steam-heating/water-heating appliances/systems
○ Leakage or overflow of water or steam
○ Freezing of plumbing, heating, air conditioning
○ Short-circuit damage caused by electrical appliances

Again, it is always best to clarify this with your renter’s insurance provider.

● Smoke damage from fire.
This could already be included in the landlord’s provisions, but it is best to clarify this as well with the renter’s insurance provider.
● Damage caused by the renter.
Have you left the tub running accidentally and it flooded the floor? You’d have to replace the flooring for sure.
● Liability coverage.
In the event that someone gets hurt while on your property, your renter’s insurance can cover the costs you may be legally responsible for paying. Some examples: if someone slips or falls, if your pet bites a visitor, etc.
● Theft coverage.
Some renter’s insurance providers cover items even when it’s not in your home. For example, a professional camera stolen on vacation may still be covered by renter’s insurance since it is considered insured property. Clarify if additional items such as items in a personal safe or your car are included in the renter’s insurance.
● Temporary living expenses.
On the very rare occasion that you are unable to live in your current rental home because it has been made uninhabitable, renter’s insurance can cover the cost of a temporary place to live in. This is known as the loss-of-use coverage.

Other special considerations.

It’s a common myth that the landlord will pay for damages. This is true only to a certain extent. The landlord will pay for damage that happened to the apartment but not pay for damages to your property. For example, when your neighbor’s pipes burst, the landlord will pay for their pipes but not for the water damage to your personal property. So if any special equipment or documents get damaged in the flood that ensued from the burst pipes, the landlord’s insurance does not cover that. In cases like these, it’s best to have renter’s insurance.

Getting ready for the holidays? Are there gifts under your tree or inside your house that require renter’s insurance? Do you have clothes, gifts, or decorations that require insurance coverage in case of disaster? Do you have a hobby, a sport, or activities that use specialized equipment? You might need insurance coverage for your specialized equipment.

Do you run a home-based business? Most of your assets will be stationed at home if that’s the case. These are most likely expensive or very important assets for your home-based business. You should have those very important assets covered by renter’s insurance to protect them in case of home disasters.

Sometimes renters need help understanding the provisions and coverage of renter’s insurance. Then there’s the hurdle of choosing the best renter’s insurance provider. It’s a good idea to get help from someone who understands renter’s insurance explicitly. Get help from an expert.

Sometimes, landlords also need help understanding the nuances of renter’s insurance in order to explain the details and benefits of having it to their tenants. After all, you can’t explain what you yourself can’t understand. It’s a good idea to get an overview and some pointers from someone who actually understands how renter’s insurance work.

Need help securing and understanding the nuances of renter’s insurance?
When shopping around for renter’s insurance, you need to ask the insurance companies the right questions to ensure that you get the exact kind of coverage you need for your rental property. The pointers provided earlier are just some of the basic questions you can ask when looking for a renter’s insurance provider. You need to refine them in order of priority and needs for your rental property. Compare different policies to see where you can get the best coverage for the best price.

Renter’s insurance is the best way to protect your property and provide you with peace of mind. It minimizes expenses that might come up in case of emergency and in the long run, helps you save money in the event that you ever come across theft, vandalism, fires, floods, or (god forbid) some catastrophic home disaster.

Here at Davis Property Management, we can help you understand the slight subtleties, important details, and benefits of renter’s insurance. We’re not just here to help tenants but to help landlords understand renter’s insurance. We can also connect you with a good renter’s insurance provider. Give us a call today on 425-658-7471 today.