What is Renters Insurance?
October 27, 2007
There are a vast number of consumers who do not own their own home and therefore are ineligible for homeowner’s insurance as it pertains to personal items. So what can a renter do in order to protect his or her personal items? Renter’s insurance is the answer.
Renter’s insurance is exactly as the name implies. It is insurance that is designed to be used by those who rent their homes. This type of insurance does not, usually, include any type of protection for the actual structure, the home or dwelling, per se, nor does it involve any type of protection against liability for personal injury should someone be injured while on the property. Those types of protections are carried by the owner of the property through his or her homeowner’s or business insurance.
In very simple terms, renter’s insurance provides protection against loss or damage to the occupant’s personal items. These items might include furniture, electronic gear, computers, clothing, and things of that nature. In the event that these types of items (so long as they are covered on the policy) are damaged or stolen, the policyholder can recover some monetary reimbursement or replacement of the items.
In this day and age of high-tech electronic gear, computers, and flat screen televisions it does not take many items to add up to a substantial amount of investment. In the event of a natural disaster, fire, or burglary the lost of these items and subsequent replacement can be very expensive. Renter’s insurance can help offset that expense.
Many consumers do not realize just how affordable renter’s insurance can be. The fact is many consumers can find good quality renter’s insurance for around $200 per year. This rate can vary depending on the amount and value of the personal items on the policy as well as any amount of deductible but overall these types of policies are within the budget of most people.
It is important for those people who purchase renter’s insurance to keep their list of belongings updated with their policy carrier. In many cases, the insurance company will provide the renter with an inventory sheet that is easy to fill out and keep updated. It is also important to keep receipts for new items as they are purchased. The inventory sheet, insurance contract, and receipts should be kept offsite if possible. Keeping these important documents (and other important documents) offsite will ensure that they will not be destroyed in the event of fire or building collapse.
Another important issue that is sometimes overlooked has to do with moving. If you move, it is important to notify the insurance carrier of the new address.
Renter’s insurance is easy to find and to apply for. Many online carriers are available to answer questions and to give quotes. As with most things, it is a good idea to shop around before signing on with one company over another. You might be surprised at just how affordable this important type of protection can be