We’ve discussed what homeowner’s insurance is all about and how essential it is if you own a house as property. You would avoid having something terrible happen to your property, and that’s something we can all agree on. It’s the basic principle of insurance.
What happens if you do not possess a home of your own? Not everyone is a homeowner, but that doesn’t mean a lack of accommodation. You would have someplace where you live, and it’s just about as yours as your landlord’s.
Unforeseen circumstances could occur, and they can be costly, and that’s not even the half of it. Is there a way to have homeowner’s insurance even though you are renting or leasing? The answer? Renter’s Insurance.
In this article, we explain what it means, and all it entails.
What is renter’s insurance?
Renter’s insurance can also be called tenant’s insurance (and in this article, we’d be using them interchangeably). It is an insurance policy that mirrors homeowner’s insurance; in the sense that it does what homeowner’s insurance does, indemnifying the property against loss or damages. The difference here is that where homeowner’s insurance may be said to have comprehensive coverage, tenant’s insurance is limited and does not provide protective cover for the structure of the property. Instead, it protects the tenant and their property, and any additions that maybe have been made to the property.
How does renter’s insurance work?
Tenant’s insurance works with the same concept behind homeowner’s insurance; only that it is limited and comes with exceptions.
As mentioned earlier, the property’s structure is not covered in the insurance policy, except for some small adjustments the tenant may make to the structure.
Tenant’s insurance covers the tenant’s properties and belongings from mishaps such as theft, fire or vandalism. It also covers liability, and if the property before uninhabitable, this insurance covers temporary or impromptu living expenses.
Does it cost much?
Tenant’s insurance is considerably less expensive than the typical homeowner’s insurance. This is due to the fact that in the latter, the entire property is under the insurance policy’s cover, along with belongings.
In tenant’s insurance, it saddles the actual owner of the property with the responsibility of insuring the property, except the tenant’s belongings. Renter’s insurance insures the tenant’s belongings instead.
What does a typical renter’s insurance policy cover?
A typical renter’s insurance policy protects a range of three (3) types of damages or losses. These damages could be loss of use, personal liability or damages to personal property.
Why should you get renter’s insurance?
The actual question is, why not? While the property may not be yours, the items could happen. You wouldn’t want to be caught unawares and unprotected.
How do you apply for renter’s insurance?
- Assess your belongings and value them
- Choose your preferred insurance company
- Choose your renter’s insurance policy.
Always protect yourself, because it pays. Even when you do not outrightly own property, you still have to protect your belongings. Tenant’s insurance is very crucial for every tenant or lessor.