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Understanding What Renters Insurance Covers Can Save You Money

Posted by Hank Coleman on Feb 24, 2011

It is extremely important for renters to know what renters insurance covers in order to ensure that their possessions are protected from loss, theft, or damage. There are many things that are included in renters insurance and other items that are not included in renters insurance coverage. Many renters mistakenly think that they will be covered under the homeowners insurance policy or their parents’ homeowners policy. Other renters think that their valuable electronics and video game systems are covered. Renters need to know what is their renters insurance covers and what is excluded on their renters insurance policy.

Do Not Rely On Your Landlord’s Insurance

One of the most common misconceptions about renters insurance is that they are covered under the landlord’s policy and will be protected should something happen. This is simply not true. Only the building and any outbuildings that are owned by the landlord are covered under his or her insurance policy. A renter’s personal possessions are not covered one bit by the landlord’s home insurance policy. Renters need to purchase their own additional insurance policy. In addition to the actual buildings and structures, renters are not covered from liability should someone slip, fall, and hurt themselves in your home because of the renter’s neglect. A landlord’s homeowners insurance policy will only cover people who are hurt in a common area outside of the apartment. This can create a large liability for renters who are not property protected through renters insurance.

You Are Not Covered Under Your Parents Policy

This is another misconception that has been out in the market for a while, and many renters do not realize that they have a large misconception about their policies. Unless you are a college student living in a dorm room, you are not covered under your parents’ homeowners policy. You should check the specifics of your parents’ homeowners insurance policy if you wanted to use a port of it to provide you with protection. In most cases, renters are not covered by someone else’s insurance policy. Renters need to purchase their own separate renters insurance policy.

What Renters Insurance Covers

So, what things does renters insurance protect? Renters insurance covers both a tenant’s liability and their personal property. Renters insurance policy covers the losses that the renter would suffer should his or her contents be stolen, damaged, or destroyed up to the amount of your coverage limit. Be sure to check on how much coverage your specific renters insurance provides for such high dollar valued items like computer equipment, electronics, artwork, collectibles, stamp collections, and financial documents. You may need to purchase an additional rider on your renters insurance in order to make sure that you have the right level of coverage for those categories. Luckily, riders on your renters insurance policy are very cheap and can be found for as little as a few dollars per month per category. These riders are well worth their small cost to the renter.

Renters insurance is extremely inexpensive to purchase. For $20 o $30 per month, most renters can purchase as much coverage that they would need. In most cases, renters do not own a lot of personal property. Therefore, they receive tremendous discounts on their renters insurance premiums. The cost of protection is too small and insignificant not to purchase the protection that it provides. Every renter should have renters insurance coverage. Renters insurance covers your personal property and prevents you from assuming liability should an accident occur. It is very cheap peace of mind.

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