Since most homeowners are also mortgage holders, they are required to have home insurance. However, most renters are not required to purchase renter's insurance according to the terms of a lease. They face many of the same risks as homeowners. Although renters do not have to pay for the actual structure that is rented, they are responsible for covering their personal belongings that they bring into the structure. Most renters do not purchase insurance because they feel that it is too expensive. Average policies range between $15 and $30 per month.
In comparison with the cost of replacing expensive belongings, the monthly premium is a good deal. This is especially true since renters have no control over the actions of other renters who may be careless. Fires destroy hundreds of apartment complexes every year. Some renters do not purchase coverage because they own very few valuables. However, insurers encourage renters to tally up the value of even their small-ticket items. Dishes, furniture, clothing and other belongings often total well into the thousands even for renters who do not have expensive possessions. A basic policy will cover the cost of replacing necessities. One of the biggest misconceptions about insurance is that the landlord's policy will also cover the renter's belongings. This is not true. The landlord's policy only covers the building and certain features like plumbing fixtures, pipes, wiring and other things that a renter will leave behind when moving out. How Much Renter's Insurance Is Needed? The best way to determine how much coverage to choose is to talk to an agent who will collect information about belongings. An agent can suggest how much coverage to buy based on the value of current possessions. An agent will also be glad to explain what certain terms mean. These are some additional issues to consider:
Renter's Insurance Discount Some insurance companies offer discounts if there are fire extinguishers, burglar alarms, sprinkler systems or other safety features on the rental property. Also, some insurers may offer discounts if a policyholder has other types of insurance with the carrier. Ask about bundling discounts. Natural Disasters Some areas are more prone to flooding or earthquakes. Damages from such disasters are not usually covered under a standard renter's policy. Ask an agent about extra coverage when renting in a high-risk area. Pets Certain cities require owners of specific types of pets or dog breeds to carry insurance. Owners of these pets may have to pay more for renter's insurance if their pets or pet-related incidents are not covered under the standard provisions. Temporary Relocation If something happens to the rental unit that makes it inhabitable for a period of time, renter's insurance covers the cost of living elsewhere temporarily. Some examples of such damages include fires and toxic substances. Renter's insurance includes personal liability insurance, which covers injuries to others who visit the renter's property. If a renter's insurance claim must be filed, it is important to take pictures of any damage or issue. Contact an agent immediately for help in filing a claim to ensure a quicker process. To learn more about renter's insurance coverage, speak with our office.
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Rod Hanks
Rod has owned The Hanks Group, a Leading Nationwide Insurance agency since 1999. We help families and business owners protect their most valuable assets with a broad range of insurance products. We believe that finding the right auto, home, life and commercial insurance for our clients Starting out with 1 employee in a small office in East Dallas, The Hanks Group has grown to be one of the largest Nationwide Insurance Agencies in the Dallas Fort Worth Metroplex, with offices in Dallas and Fort Worth. Rod is always available to answer any questions about insurance or business at 214-275-8372 Archives
October 2018
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