A study conducted by the Insurance Information Institute shows that 96 percent of homeowners have insurance, but only a bit over one third of renters do. In case of a natural disaster or a fire, the landlord probably has insurance to replace rental units. His insurance however, doesn’t cover the belongings of the lease holder – get your own.
You should know by now that renters insurance covers the “named perils” such as fire, water damage from burst pipes, theft, or vandalism. This means that if your phone is stolen from your apartment along with other things, it is covered, but if you misplace it or drop it in your soup, it’s not. The basic policy, which is most popular among renters, covers between $20,000 and $30,000 worth of items. Jewelry, antiques, art and any other high-dollar belongings require additional costs; you’ll need an appraisal for jewelry, a photo and serial number for electronics and musical instruments. Obviously, this will increase the premium.
In case of a disaster, if your apartment is uninhabitable, you’ll have renters insurance pay for a place for you to stay, up to a limit. The insurance will cover your goods, but not the apartment itself, that is the landlord’s responsibility, that’s when the owner’s insurance steps in.
Floods and earthquakes are not covered by renters insurance. Those who live in a flood-prone area can purchase a private flood insurance through the federal government, more information can be found on FloodSmart.gov. Those who live in an area frequently affected by earthquakes should consider insuring. The additional cost is not significant, yet a severe earthquake could cause serious loss and make your place uninhabitable. Furthermore, if an earthquake causes fire, the fire damage will be covered only if there is insurance for earthquakes.
To sleep comfortably, create a home inventory video and upload it on a cloud storage site. If your home is burgled, the insurance company won’t just cut you a $20,000 check, so you’ll have to produce proof of what you owned. The video in which you describe your belongings and say how much they cost will help you a great deal.
In case you have to make a claim, it will be paid within two weeks, in some cases even within one week.
