Renters’ insurance isn’t really a top priority when it comes to protecting yourself and your personal belongings. In fact, for some people, this policy is right up there with alien abduction insurance (believe it or not, this insurance policy does exist). You probably see it as an extra cost after you have finished paying for relocation.
However, what you are forgetting here is that you are still financially vulnerable. There are plenty of ways in which you might suffer a loss and end up paying for the damage out of your pocket. So, let’s have a look at the basic coverage provided by renters’ insurance:
- Safety for your personal belongings and contents at home
- Safety for your personal belongings and contents away from home
- Personal liability
- Additional living expenses in case of an emergency
- Medical payments that you might have to pay to others
Now, let’s talk about what renters insurance covers:
Coverage Option #1
Safety for Your Personal Belongings in Home
You have finally moved into your condo and are now setting the place right. All of your belongings are in this place and to protect yourself from unforeseen incidents, such as theft, you need renters’ insurance.
This coverage option will protect certain contents, which include your electronics, mobile devices, your bike, your furniture and cutlery, and even your favorite jeans and trainers. First, your items are valued because if you lead a certain lifestyle and your hobby is to collect antique art pieces, then you will need a customized policy.
A basic renters’ insurance package usually covers your belongings. The premium for such policies is usually between $15 and $20 per month.
Coverage Option #2
Safety for Your Personal Belongings Away from Home
Most people don’t even think about buying renters’ insurance because they believe that their place is completely secure. Think beyond theft insurance claims: are you prepared to cover the cost due to freak accidents?
Example of a Bathtub Incident (Water Damage)
Let’s assume that you are reclining in your living room chair and watching a movie when suddenly you hear the sound of water dripping from the kitchen. You head into the kitchen to check out of you left the faucet open, but no such luck. Confused, you try to follow the sound and walk back into the living room.
Giving up, as you sit down on the sofa, you hear a crack and a split second later, a chunk of the ceiling comes crashing down and water sprays all over in the room on your electronics. You try to reach your neighbor, but unfortunately he is out. So you finally call your insurance agency and they send over a damage control team.
The following are the areas your renters’ insurance will cover:
- Cleanup of the entire condo (whatever space the water has damaged)
- Additional living cost if extensive damage makes the condo inhabitable
- Compensation for your personal property such as the electronics
When it comes to personal belongings, renters’ insurance offers the following protection benefits:
- Anything that happens to your movable items: laptop, furniture, cell phone, etc.
- Anything that happens because someone is accusing for causing property damage or a personal injury
- Anything that forces you to move out of the condo
An all-risk or open peril policy protects you everything and anything, as long as the said peril is mentioned in the policy. If you are responsible for an injury, then renters’ insurance will not only cover the costs of defense, but it will also cover voluntary medical payments.
Moving on to protection for your personal belongings: when you are traveling, a renters’ insurance has even got your covered. Make sure to ask your insurance agent about protection for contents that are off the premises.
There’s a catch here: every policy has a coverage limits, which means some of your belongings might be covered during travel, but not others. If you want all your belongings protected, you can increase the coverage, but keep in mind that you will have to cover a deductible.
Here’s what you will get under this coverage option:
- Liability Coverage: Monetary protection if you are held liable for property damages (water damage, fire, etc.)
- Lost Items of Theft Coverage: Some people like to travel light, while others can’t leave their comfort behind. One thing that many people are afraid of is theft during their travels. Renters’ insurance covers the cost of your stolen personal belongings.
- Replacement Cost: If you do replace something that you cannot travel without, you can call your insurance agent and relay your problem. You can then carry on with your trip after getting reimbursed.
An all-risk policy covers certain crazy situations like your kid dropping your bag in the ocean in the middle of a boat ride. So basically, you are covered from every angle.
Coverage Option #3
What if you get sued for something that you didn’t do, like that fire in your condo? Did you know that if you are a student and or just at the cusp of building your career, the court might make you to give out your future earnings towards the damage expenses?
Again, renters’ insurance will cover the cost of your legal defense and, at the same time, protect your earnings.
Example (When You Have No Source of Income)
You are playing golf with your buddies. It’s your turn and you try to hit wide to get some ground covered. As the ball goes in the air and over the hedge, you hear a shout. You go running to see where the ball has injured a person. If the case goes to court and you are held liable, renters’ insurance will cover all the costs.
Coverage Option #4
This coverage option is pretty self-explanatory. If your negligence injures your neighbor, then you will be held responsible. If your neighbor sues you, then renter’s insurance will pay for the hospital bills.
Coverage Option #5
Additional Living Expenses
Let’s assume that you were having a candlelight dinner with your friend. After eating, you moved to the couch to watch a movie. Before long, you both were in deep sleep when suddenly you were woken up by smoke. Turns out the candle tipped over and the table caught on fire. You grab your friend’s hand and run out of the condo, leaving your personal belongings behind.
You are now homeless and don’t want to burden your family. So you call your insurance agent to relay the news and are told that you can claim additional living expenses. From legal support to a temporary home and recovery of your lost items, everything is covered in the policy.
So there you have it… the uncountable benefits of renter’s insurance. Does the policy seem appealing to you now? Then visit Pawson and get in-touch with a qualified insurance agent. We offer different types of insurance policies for individuals, as well as families. To know more about their insurance policies, give them a call at 203-481-8898.
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