Did you know that the average renters’ insurance premium fell by 2.7% in 2017 and a further 0.6% in 2018? This is good news for any renters who are looking to purchase insurance coverage for their rental units.
But what is renters’ insurance all about? What does it cover? We will answer these questions and more in the short renters guide below.
Three Ways Renters’ Insurance Protects You
There are three primary ways renters’ insurance (just like homeowners insurance) protects you.
- Your personal possessions are protected
- You get liability protection
- You could also get Additional Living Expenses (ALE)
Let’s go into detail on each kind of insurance coverage.
Personal Possessions
In case of a fire, burglary, or any other disaster, your personal possessions (property damage) that are covered under renters’ insurance would be replaced. It’s a great idea to create a detailed inventory of all of your possessions and take pictures of them as well if you want to go a step further.
Remember that insurance coverage usually comes with a deductible. For example, if you have a $500 deductible on your insurance policy, then you would have to pay the first $500 of damages, and anything after that is the responsibility of the insurance company.
Some insurance policies provide off-premise coverage, which means that personal possessions that get stolen or damaged while traveling, would get covered under the policy as well.
Liability Protection
This is for when you need protection against lawsuits when bodily harm or property damage is done by you, your family members, or even your pets. In addition, anyone who gets injured while on your property can get covered by no-fault medical coverage, so they can submit all medical bills directly to the insurance company without resorting to a lawsuit.
Additional Living Expenses (ALE)
If you live in an area with a lot of natural disasters, you might want to think about adding ALE coverage. If your home gets destroyed by a disaster, then you will need to live somewhere else for a while and this can get covered by your insurance policy.
ALE coverage can pay for hotel bills, restaurant meals, temporary rentals, and other expenses you incur while your rental home is being built or repaired.
Get Discounts on Renter’s Insurance
There are many ways you can get a discount on your renters’ insurance quote. For example:
- if you have good credit
- if you have smoke detectors installed
- if you have deadbolt locks
- if you have stayed with the same insurer for a while
- if you are over 55 years old
Make sure to enquire about any discounts available from your employee as well. Click here for personal insurance quote that you can count on.
Get Insurance Coverage ASAP
There’s no need to delay any further. If you are without renters’ insurance, you are putting yourself and your family members at great financial risk.
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