Many people have opted to rent apartments or homes rather than taking out a mortgage in this current economic environment. Renting is often an easy way for you to save money while also avoiding depreciating home values. Unfortunately, many renters believe that their landlord’s insurance policy will cover any damage, destruction or loss related to their personal property, but this simply is not the case. If you’re a renter, you will need your own insurance policy to ensure that your property is protected. However, it’s also extremely important to keep in mind that these policies won’t cover everything.
What Renter’s Insurance will Cover
There are actually two separate types of renter’s insurance that you could invest in. The most common is general insurance, which will cover your personal belongings. This property can include your furniture, appliances, electronics, clothes, and much more. Very few of your possessions won’t be covered under this policy. It’s also important to note that general policies will protect you from several disasters including fire and theft.
Renter’s liability coverage, on the other hand, covers damages that you caused and that your landlord will hold you accountable for. This could include accidentally starting a fire, a pipe being broken from a child flushing a pillowcase down the toilet, or just about anything else that a landlord or the law would hold you responsible for. This will also give you coverage in the event that a person is harmed in your home, much like a homeowner’s policy does.
What Renter’s Insurance doesn’t Cover
There are unfortunately a few things that renter’s insurance won’t cover. As mentioned earlier, you will need liability coverage if you hope to not be held financially liable for damage that you have caused. It’s also important to note, however, that even certain items won’t be covered if they are stolen, damaged, or destroyed. Expensive art, for instance, may not be fully covered if it is lost, so it’s important for you to get additional coverage if you have rare art collections.
Rental insurance policies will also not cover other types of collections. If you have any expensive collection of baseball cards, artifacts, or other rare items, you will likely need to get an appraisal to ensure proper coverage. Some policies will also only cover computer equipment and other electronics up to a certain amount. This isn’t an issue for most people, but if you have high end electronics, you should consider purchasing additional insurance.
It’s also important to note that most policies will only cover jewelry up to a certain amount. This can be extremely detrimental for a person, especially if they lose jewelry or any other property due to a natural disaster such as a flood or an earthquake. This is because several policies will not cover natural disasters. Fortunately, many insurance companies will allow you to add this type of coverage if you’re living in a high risk area.
It’s disheartening to know that many renters aren’t aware of the fact that if something destroys their property, they will likely be completely out of luck unless they have a renter’s insurance policy. If you actually think about it, it makes sense that a landlord wouldn’t pay for insurance to cover your personal property. This is why it is so vital that you have your own insurance policy if you are renting an apartment or home.
Visit the Absolute Integrity Insurance Group website or give us a call at 888-566-7771 for a free quote for your San Francisco renter’s insurance.