Last
week, I tried to explain some things about homeowner’s insurance and point you
to some sources that might explain more than I could. This week, we’re tackling
renter’s insurance! According to the
U.S. Department of Justice, a rental property is 79% more likely to be
burglarized than an owner-occupied property. It has a lot in common with
homeowner’s insurance, but there are a few differences so pay attention if you
rent!
First
of all, why is renter’s insurance important? Well, just like in homeowner’s
insurance, it is for protection. Many cover fire, water, and burglary loss and
damage. Some cover if someone is hurt unintentionally in your rented property.
A rented property can be an apartment, a house, a trailer or even a dorm room. A
bonus is that the insurance can help or totally pay for a hotel if you can’t go
back to your home. Just like with
homeowner’s insurance, you give a list of your belongings to the insurance
company. Then you can either get money or the items replaced from the loss.
There are limits, of course, on things like computers, electronics and jewelry.
The policies can cost as little as $150 a year. Yes, the owner of your property
probably has insurance but that won’t replace your belongings.
What’s covered? Clothes,
furniture, computers, electronics, jewelry, bicycles; motor vehicles are not
covered however. If you have rented or borrowed items that were stolen or
damaged, those are covered too. Depending on your
coverage options, a renter’s insurance policy covers your personal items lost
due to theft, fire, lightning, smoke, windstorms, hail, or vandalism. Roommates
are NOT covered. You will each need to get a policy as unrelated or unmarried
persons cannot be covered under the same policy.
The links below provide great
tips and answers to these questions and more. Much of the information is
similar to that in the homeowner’s FAQ I provided last week, so check out the
links for more information. Good luck!
Sources:
