Today, people who lease real estate often choose to purchase rental insurance policies. This form of coverage closely resembles homeowners insurance, without covering damage to the dwelling itself. Instead, rental insurance serves to protect the tenant.
Who Needs Renters Insurance?
Rental insurance provides vital insurance protection for anyone residing in a rented home. Some landlords require tenants to take out rental insurance as a condition of leasing real estate, in fact. If a break-in or an accident unexpectedly deprive the tenant of personal property, this type of insurance policy offers some level of financial compensation.
How It Works
A tenant seeking rental insurance should review the policy provisions carefully. Some policies contain specific requirements relating to the documentation of claims. A customer protected by renters insurance should consider carefully listing and/or videotaping personal belongings on the premises. This type of information may prove useful if it ever becomes necessary to file a claim.
Different Types of Renters Insurance Coverage
Many insurance companies offer standard renters insurance policies covering the personal property owned by the tenant, and also supplying some protection against accidents on the premises (in which a tenant might face liability). If it becomes necessary for the tenant to vacate the leased home for some reason, many rental insurance policies even pay for temporary accommodations. The specific provisions of rental insurance policies vary. State insurance regulations and the policy terms impact this type of insurance.
For example, if a leaky hot water heater causes a flood in a rental home and damages a cell phone owned by the tenant, a renters insurance policy may offer partial compensation for the loss. This type of policy brings greater peace of mind to households residing in leased properties. Specific claim coverage limits apply.
The Major Benefits of Renters Insurance
This insurance protects a tenant against accidentally losing valuable personal property without receiving some level of financial compensation. After the payment of the deductible, renters insurance policies offer financial compensation within coverage limits.