Insurance policies are often extremely complex as almost all of them are written using highly technical legal jargon, and each and every insurance policy differs depending on the company you take it out with. Both of these things make it very difficult for the average citizen to understand insurance policies, which is an issue as it means a large percentage of people are paying for something they don’t fully understand.
There are hundreds of types of types of insurance out there, but this article will focus specifically on renters insurance. Renters insurance is a type of insurance that, as you probably guessed, people who are renting real estate can take out. This type of insurance is not always legally required, but is usually a good thing to invest in if you are renting a property. Each insurance policy is different meaning it is essential to check the small print of your specific policy but this article will provide answers to some of the most frequently asked questions about renters insurance that apply to most renters insurance policies.
Does Renters Insurance Cover Structural Damage To The Property?
No, the landlords insurance provides cover for structural damage to the property. Therefore if you notice anything such as hairline cracks report it to your landlord as they will take care of it. It is also important to know that the landlord’s policy covers any structural damage from natural disasters such as floods, hurricanes and earthquakes.
Does Renters Insurance Provide Cover For The Contents Of The Rented Property?
Yes, this is the main reason why it is wise to take out renters insurance. Anything which you yourself own that is in the house will be covered by the policy. For example, if a storm leaves a hole in the roof and water damages your property most of the time your policy will cover it. But like was said in the introduction, you should check the small print to make sure.
Does Renters Insurance Include Replacement Costs?
Yes, most renters insurance policies include replacement costs. The way this usually works is that if something you own gets damaged, the policy will pay you enough money to replace it new. This is why for the small cost, renters insurance is more than worth it.
Does Renters Insurance Cover Day-To-Day Wear And Tear?
No, wear and tear is a well-known issue in rented properties, especially when there have been quite a few tenants in the past. However, neither the renters insurance nor the landlord’s insurance will normally cover wear and tear. This is because it is generally seen as something that not much can be done about. Nonetheless some insurance policies may cover it.
Are People Who Get Injured Whilst On The Rented Property Covered?
Yes, renters insurance covers for injuries that occur whilst on the rented property. So for example, if someone slips over whilst visiting, the renters insurance will cover it, which will allow for medical expenses to be paid.
If I Have To Move Out For A While Because The Rented Property Is Uninhabitable Does Renters Insurance Cover The Costs?
Yes, if the rented property is damaged and you cannot live in it renters insurance will help you out. This is because during that time you have to live somewhere else you will probably still be responsible for rent. This cost can be claimed on the insurance usually under “loss of use” so make sure this is included in any renters policy you take out.
These are the answers to some of the most common questions about renters insurance. On the whole for the small price you pay, renters insurance is definitely worth it even if you are not legally obliged to get it.
Lisa Peteres is a freelance writer and insurance expert. She is currently writing on behalf of www.homeownersinsurance.com. Feel free to reach out to her if you have any questions that this articles doesn’t answer.