When people hear about home insurance, the major thing that comes to their mind is that only homeowners should get home insurance. However, with a large number of Americans who rent houses, estimated at over 111 million people, insurance companies also provide insurance covers for renters. This article will define renter’s insurance and discuss the three categories of renters’ insurance policies.
Definition of renter’s insurance
Renter’s insurance policies are insurance policies that are targeted towards people who have rented a house. Even though it would not be expected that the renter should be responsible for a house when there is an issue with the house, there are a lot of instances where the renter could be liable. This is especially when the event happened as a result of a costly mistake made by the tenant. Lemonade Home Insurance is one of the companies that offer renters’ insurance. Some home insurance policies that renters can opt for are discussed subsequently.
Insurance for extra living expenses
A renter can take this type of insurance policy to cover for some of their expenses. For instance, if the tenant’s unit gets damaged or there is an incidence where the renter requires a temporary house. The insurance company might opt to pay for hotel accommodation for the tenant and also cover the costs for the tenant’s meals among others.
Liability insurance protects a tenant from damages of a financial nature that come up when somebody gets injured while they are within the tenant’s facility. For instance, an individual came to visit the tenant and then got injured in the shower or got bitten by the tenant’s dog. The tenant would be expected to cover for the visitor’s medical bills. Liability insurance will come in handy to save the tenant from directly covering the cost. In other cases, the insurance company could help the tenant institute a lawsuit that will free him of any culpability to the incidence, such that the tenant would not have to pay any bill.
Insurance for personal property
This insurance policy protects the tenant from losses to personal property as a result of unfortunate incidents such as fire or theft among others. In several cases, many tenants underrate the amount they have invested in properties until all of the properties get stolen or destroyed. From time to time, you should try to evaluate what it had cost you to get all your property and what it would cost you to replace them. Estimate the cost for your jewelry, clothes, furniture, artwork, DVD collection, Xbox, gaming equipment, television, phones, and laptop. In the event your property gets damaged or stolen, the insurance that your landlord has taken will not cover for your damaged properties. You are expected to be responsible for every property you have acquired. An insurance policy for personal property will come in handy to cover from your property from fire, theft as well as other unfortunate scenarios. It is worthy of note that not every property type can be insured. Thus, you should check to see what properties are covered and which are not covered in your insurance policy before signing.