Common renters insurance misconceptions: that it’s too expensive, that it’s redundant, that it’s unneeded or that it covers each and every item you possess. We’ve debunked a few of them already and now we’ll focus on what’s NOT covered by this type of insurance policy.
Natural disasters—those of you who live in an area known for extreme natural disasters such as hurricanes, tornadoes, earthquakes, etc.—should read carefully and confirm because you may not be covered for some weather conditions. Just make sure that a natural catastrophe doesn’t also destroy your finances.
Flooding vs. water damage—it’s crucial that you understand the difference between water damage from outside your home and from inside your home. In case a pipe bursts and you have renters insurance, chances are that you will receive sufficient money to replace the items you’ve lost. However, in the unfortunate event that groundwater rises and enters your apartment, or if there’s a flood that infiltrates your home, renters insurance might not be enough. Find out beforehand how things are in your area, because nobody ever thinks they need it until it’s too late.
* Here’s another thing that’s good to know—hurricane-protected renters might receive help if the structure of their home is damaged first by the storm and, as a result, water comes in; but water damage from flooding alone may not be covered.
Personal property exclusions—as with homeowners insurance, there are several distinct categories of items that renters insurance puts limits on or that aren’t covered at all. Examples include jewelry, electronics, art and collectables. If you own expensive items from these categories that may exceed your renters insurance coverage limits, you can protect them through a scheduled floater policy. Your items of high value will be appraised and insured for their value, separate to your renters insurance policy limits.
Lack of inventory—you might find yourself in the situation where the insurance company doesn’t approve your claim after you lose something or are the victim of a break-in or natural disaster because you cannot prove the item’s existence and value. So create an inventory beforehand and store your list safely either by using the online cloud or save it to a flash drive that you keep in a fire- and waterproof safe.
All in all, it’s important to take the time to fully understand your renters insurance coverage. Ask your provider plenty of questions but don’t fret, even though renters insurance has limitations, the ways to obtaining adequate coverage are basically limitless.
