Whether you’re renting an apartment, condo, or home, the kind of insurance you have matters, as well as the type of place you are renting. You’ll, of course, be looking at rental insurance. It may sound unnecessary in and of itself, but many people are missing the in-depth knowledge of just how rental insurance works and what it covers (or doesn’t), and why it is important. So, let's discuss this to help you understand.
What exactly is rental insurance?
This is a specific kind of insurance policy that basically covers your stuff, for a rental property in which you are currently living. This protects you, the tenant, from damage to your possessions, theft, and legal liability. Whether renting an apartment or a 4,000 sq ft house, you are eligible for rental insurance, and quite honestly, should highly consider it!
What does renters insurance cover?
Here are some of the expectations that are covered in rental insurance policies of all kinds and limits. However, be sure you discuss your concerns with your insurance agent to be sure you are properly covered.
- Your possessions and personal property: This includes your furniture, your appliances (that you bring into the unit with you), and any personal property that you store in the home itself. Some policies may require an inventory, so keep this in mind.
- Your guests’ lawsuits: If a guest falls and hurts themselves while at your home and then turns around and sues you, your renter’s insurance will cover the lawsuit and legal fees associated with it in the event of a loss or a win.
- Your guests’ medical bills: Similar to above, your policy will cover any medical expenses and bills by your injured guests.
What does rental insurance NOT cover?
There are some common exclusions from insurance policies that you’ll need to be aware of. These include:
- The structure: Your policy does not cover any damage to the structure because this is the landlord’s responsibility. This includes holes in the walls, broken windows, etc.
- Natural disasters: From flooding and tornados to tree falls to lightning strikes; these typicall aren’t covered under standard rental insurance. You can sometimes add flood insurance as a separate policy, however, so you’ll want to ask your agent about this if you are concerned!
- Damage to your vehicle: Any damage to your vehicle wouldn’t be covered by your policy since your vehicle is outside and not inside the rental property! If you are concerned about this, you would need to address your auto policy instead.
Not sure on all of the above? Ask Harbour Insurance Services!
So many people find out after the fact that their insurance policy doesn’t cover something, that they thought should or would. This is a disaster that no one -- including your agent -- wants to have happen to you. So, make sure you take a meticulous look through your policy. Any questions or concerns? Ask your agent. They’ll be able to walk through several hypothetic situations with you to know what is covered and what isn’t.
The right coverage matters when the time comes for you to call in a claim. Make sure that you know what you’re covered for, and what you aren’t so that you never have to deal with a nasty surprise. Rental insurance is crucial to have, no matter how meager your possessions are or how sure you are that you’ll “never need it.” Insurance is specifically intended for those “wait, what?” moments, after all. We never WANT to have to use our insurance, but it is there in CASE we need to use it.
Contact Harbour Insurance Services at (281) 520-4090 with any questions about rental insurance as well as any personal insurance needs.