f you are staying on rent then are you insured? Your building might be insured by the house owner under the homeowners insurance. But what about your belongings. It is not insured! In that case you should take a Renter's insurance. New to the term, lets learn more about it.
Now renters insurance is the financial protection over your possessions when you rent a home. if in case of a burglary or a fire, even if your apartment is insured your belongings are not and it incurs great damage on your assets and your pocket. The premium is not at all expensive and it covers only your belongings and not the building you live in. Now what are the disasters under which my renters insurance can be claimed. They include any damages due to fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Now I can give you another reason why you need a renters insurance, it can protect you against any accidents caused by the other tenants also.
Further Renters insurance covers the additional living expenses you have when your home has been a victim to fire or other danger as listed in the policy cover. Although the insurer may set a limit for the pay it is better to confirm it from your insurance agent in the beginning itself.
Lets have a look at the various policies. The
HO-6 policy stands for the Condo owners,
HO-4 is for the renters .
The HO-4 policy covers your belongings from water damage, volcanic eruptions, theft, falling objects, ice fall or snow fall, electrical surcharge, vehicles, smoke, fire, hailstone or wind, riots, aircrafts and explosions. You might notice that floods and earthquake are not mentioned in the entire list. For these two you have to buy a rider for the same.
The renters insurance policies are of two types.
The replacement cost policy - In this insurance policy the cost of setting up your possesions which have incured a damage is given to the limit of your policy. In this case there is no deduction for the depreciation value.
The Actual cash value policy - It pays the cost of setting up your posessions where the deduction for the depreciation is cut.
Note its the deductibles - This will be the amount that you spent for the dmaged or the lost posesions before the insurance company pays. The rule is higher the deductible the cheap is the policy.
With the policy you might need a floter. If your posessions exceed the limits of the standard renters insurance covered items like silver, jewellery etc then you have to buy a floater. The floater is a additional insurance policy which gives insurance cover to the other valuables.
The other protection that renters insurance offer are -
Liability protection. Some renters insurance protects you against a lawsuit if someone or their property is damaged on your apartment.
Medical payments to guests. Some policies cover the medical bills up to a limit of anyone, except you or anyone else who lives in the apartment, who is injured in your apartment.
Increase in Living Expenses. If your living expenses increase, because you must live elsewhere due to a loss, some policies cover, up to a limit, that increase.
Lost property while traveling. Some renters insurance policies cover your property even when youˇ¦re traveling, should the airline lose your luggage.
Premium policy add-ons. If youˇ¦re willing to pay a higher premium, you can buy additional protection. The add-ons differ from company to company, so be sure to ask for details. Typical add-ons include:property damage due to floods or earthquakes