When you move into a new home, the landlord or property manager will most likely inform you about your rights and responsibilities as a tenant, and ask you to read the lease agreement thoroughly. Some may even advise that you purchase renters insurance before moving in. But in most cases, renters insurance is optional.
Renters should keep in mind that the landlord’s insurance policy only covers the property itself, the structure and the common areas, and will not reimburse or replace the tenant’s personal belongings should disaster strike. For example, if a burglar breaks in and steals you Mac, your landlord cannot be held accountable. Keeping your assets safe and shielded from unexpected events it’s entirely up to you.
Rental insurance generally comes with relatively low premiums – about 43 cents per day with ResidentShield – and protects up to your selected policy limits against a variety of mishaps such as fire, robbery, vandalism, smoke, lightning, or windstorm. Earthquake coverage is optional and available only in California.
Standard policies typically include liability coverage which basically offers protection in case of unfortunate accidents, including slip-and-fall injuries and dog bites. This means that if a guest is injured on your property, or if Fido becomes mistrusting of the mailman and decides to act on it one day, you can be held liable and sued for medical expenses. With ResidentShield, you may receive up to $100,000 of coverage against common personal liability claims and select a liability provision for dog bites up to a maximum limit of $25,000.
Rental insurance also covers unintentional damage brought about by the insured to the apartment, the common building, or any other resident’s property (such as loss caused by accidental kitchen fire).
Additionally, should you be forced to move out of your rented home while repairs are being made following a covered event, or until you can find new accommodation, renters insurance will provide you with temporary living expenses over and above your normal living expenses.
It’s often a good idea to prepare a home inventory that will help you file an insurance claim, should you be confronted with any of the above. You can create a video of your home or take pictures to make sure you don’t overlook anything important. Every little thing counts when estimating the value of your possessions, including electronics, dishes, books, DVDs and clothes. Also hold on to bills, receipts and other documents that might be used to prove an item’s ownership and value.
For more information on how to protect you belongings, and specifics of renters insurance, click here.
