Renter’s insurance still has a long way to go until it is adopted by the entirety of the renters’ community, but at least it’s heading in the right direction.
Let’s recap the most notable facts to remember about renter’s insurance and the positives a policy brings to our rental homes:
- Off-premises protection—means that if your bicycle is stolen from a bike rack at the park, or if you’re on vacation in Europe and your laptop disappears from your car while you’re out sightseeing, the insured items will be covered.
- Additional living expenses coverage—means that if you are forced to relocate (this happens when your home becomes uninhabitable due to events like vandalism, fire, theft or water damage from home utilities), the insurance policy will pay for housing (hotel or another rental) until your home is repaired. This coverage typically is limited to 30 to 50 percent of your insured personal property.
- The inventory sets the coverage—don’t just throw a number at the insurance company, you risk ending up with a lot less money than you should, or even have your claim rejected by the insurance company as it may consider your numbers fraudulent. Instead, conduct a home inventory and consult with your agent to make sure you don’t leave anything out. Use technology to create digital inventory lists that are accessible and easy to update. Some newer versions can even update the current value of your items, which will make things even easier. These days, the best place to store your inventory is the cloud.
- There are ways to reduce costs for your insurance policy:
- Being a non-smoker
- Having a smoke alarm system—be careful as an insurance company may require certain types of brands.
- Having a security system or safety devices
- Being retired or of a certain age (usually over 55 or 65)
- Enrolling in an automated payment system
- Having deadbolts
- Bundling with other types of insurance, like auto insurance.
