insuring property

Generally, it is known that homeowners are required to insure their properties, it is even a mandatory requirement for mortgage companies for homeowners to obtain homeowners insurance, this insurance is meant to protect the property, the possessions in the property, and also to protect them from any injury incurred by any visitor. However, not much is known about insurance for persons who are renting or leasing the space they are occupying; this article is meant to shine the light on tenant’s insurance. Homeowners insurance is really similar to tenant’s insurance, however the latter is meant for persons who are leasing the space they are occupying, this insurance is quite important because it has been estimated that for tenants in the United States, the average worth of their belongings is about $20,000. For tenants to obtain and maintain their insurance policies, they would need to keep an updated list of the items in their homes. The insurance can cover loss or damage to items in the home, these damages may occur as a result of a fire incident, theft, vandalism, plumbing and all electrical malfunctions. The insurance company may decide to make reimbursements with the actual cash value, which would cover the worth and the cost of the property, when they were damaged or they may make a replacement cost, which is the cost of getting new properties to replace the old ones. 

Renters Insurance

This is a kind of insurance that is provided to cover losses incurred to personal properties and also protects the insured client from every liability claim, including accidents occurring from problems that aren’t structural in nature, because those problems are the responsibility of the landlord, this insurance is provided to cover all kinds of apartments including studio apartments, mobile homes, or an entire house. This insurance can be obtained even when the renter is just beginning to reside in the apartment, the idea that there may not be enough properties to insure may fade in the event of an accident when the client discovers that they possess some properties that may not be comfortably replaceable, this insurance is necessary not essentially because of the mistake of the client, but the fact that surrounding neighbours cannot be completely controlled and they may make mistakes which may be hazardous to the residence of the insured party. Another reason that marks out the importance of having a renter’s insurance is the fact that while the insurance made by the landlord can cover for the cost of the building in the case of an accident, it would not cover the cost of replacing items lost inside the renter’s apartment, or the cost of damages for the losses suffered by any person inside the apartment. Renters insurance essentially covers some basic aspects such as the personal possessions of the insured, liabilities and all other living expenses.

Most policies would however not cover for losses incurred by “acts of God” events, where the insured perceives that they stand the risk of such events, they may make a higher premium payment. The same is applicable to places at higher risks of hurricane; in addition, persons with really expensive possessions may need to purchase floater insurance, furthermore, acts of negligence engaged in by the insured party or intentional acts of sabotage are not covered by the insurance. 

Process of Obtaining a Renter’s Insurance

To obtain your renter’s insurance, it is important that the party seeking to be insured is made aware of the following:

  • The intended insured party is required to create a comprehensive collection of their items, they may decide to make a video or take a photograph of the items, where expensive items are required to be insured, it is important that the insured party securely keeps serial numbers, so as to help them during the claim verification. The insured party may decide to go further and enter items in a spreadsheet together with their estimated value, it is important to this because, there is the risk of under insuring yourself, however when proper stock is taken, then an accurate figure is put forward which would reveal that when put together the worth of the properties is a lot to lose. While the insurance company may not obtain this information from you, it is important to keep this information secure, if ever the need arises to file a claim as this would assist in evidencing the value of the goods 
  • Once the first step has been sorted out, the next step would be for the party to choose an insurance company, this can be done by conducting a simple internet search which would produce the insurance companies that operate within the area of the insured party. One more approach may be to inquire from friends and relatives on their option of insurers to make use of; it is important that the insured informs the insurance companies on how they obtained information about them, as it can help the insured party obtain some more profitable rates and packages. 
  • Thereafter the requesting party may begin the application processes, the requester may apply to as many companies that check out and then out of the responses, secure the best rates, where possible, it would be advised that a representative of the insurance be met with physically rather than utilising an online means of phone communication. 
  • When filling the form, information may be required as to the type of structure being insured as well as the year it was built, where these information are not readily available, they may be gotten from the landlord. There are two types of coverage available and they include the replacement cost and the actual cash value, the former which is more expensive, pays the full value of replacing the goods and is about 10% more expensive than the latter which is concerned with replacing the value of the goods at the time they were lost, or damaged. It is advisable to opt for the replacement cost, however the discretion lies with the insured party. 
  • The next task for the insured party is to pay for the insurance policy chosen by the insured party. 

It is also advisable for insured parties to endeavour to make yearly payments as that would be a cheaper arrangement than having to pay instalments and make additional administrative fees. Insured parties should bear in mind that where they decide to make monthly payments, their withdrawal from their accounts may be automated. 

In conclusion, it is important to note that renters insurance protects the insured party from grave unforeseen dangers, and this should be clearly differentiated from a homeowner’s insurance which only protects the building but does not protect the goods of the insured party, this responsibility falls on the renter and not the homeowner.