Renters insurance covers the things you own. Your stuff, anything you own in or around the home you are renting. The insurance your landlord has only covered their building and fixtures.
The landlord’s insurance will not pay to replace the things you own. Your belongings will not be covered. Nothing you own is covered under the landlord’s insurance policy.
Renters suffer most from Disaster Losses
After a disaster, renters feel the brunt of the losses. Why? No insurance to cover the cost to replace household goods. Furniture, clothing, personal items, and electronics could all be lost. And no insurance to pay for it.
Many people don’t even consider purchasing renters insurance. They just don’t think of it. Renters don’t seem to understand how vital it is to cover the things they own.
They may not know they are responsible for insuring their belongings. Or it could be they felt the cost was too much.
Consider the Cost
You don’t own very much value at first. As time goes by, you start accumulating better furniture, electronics, and small kitchen appliances.
Have you calculated how much it would cost you to replace all that at one time? Add to that the cost of replacing clothing and personal items that were lost. It adds up to quite a chunk of money.
At one time, you may have had less than $1,000 invested in your home’s contents. What about now? $10,000, $20,000, $50,000, or much much more if you have a family.
You are getting insurance quotes so you can make an informed decision that does not cost anything. You may find that the cost of insurance is far less than the cost to replace your property.
What events are covered by renters insurance?
Renters insurance protects against the cost of lost or damaged belongings. Loss protected from events such as fire or burglary or against accidental loss or damage. It can also provide financial cover for legal liability.
1. Contents Insurance:
Contents insurance is the basic cover of the stuff you own inside your home. It covers your items in case of theft or vandalism. Or events like fire, storms, earthquakes, or an explosion. High winds can cause trees or poles to fall on your home. Damage caused by wild animals is commonly covered. And water leakages.
Some policies cover the outdoor items you own, like your BBQ, lawn, or deck furniture.
The insurance policies’ Product Disclosure Statement (PDS) tells you what is covered. Coverage for events not on your policy may be purchased as an addition.
2. High-Value Contents Cover:
If you own things of higher value like jewelry, furniture, art, or electronics. Should your items have a certain price bracket, you may need this coverage. Regular contents insurance has a value limit on the amount you can claim for each item.
List the things you own that cost a bit more and price their value. This will help you determine if you need high-value coverage.
3. Portable Contents Cover:
Rarely are all the things we own in the home. Many items we take with us for various reasons. Laptops, tablets, cell phones, and Ipads do a lot of traveling to and from home. These items’ values can add up to quite a bit. Especially if your family each have some electronic item, they carry with them.
While they may be covered when inside your home, they may not be protected by insurance outside the home.
4. Accidental Damage Cover:
This coverage is for unintended damage you or your family cause to your belongings. Accidents happen, especially if the kids are playing or you re-arrange your home. Or the artwork falls off the wall because the hanger failed.
Many insurers allow you to add flood insurance coverage to your renter’s policy. This coverage would insure your items if damaged due to flooding.
Other Optional Extra Coverages
Many insurers allow you to buy extra coverages if you so choose. They may include:
- Damage caused by pets
- Lock replacement
- Outdoor items
- Legal Liability Protection – if someone hurts themselves where you live.
- Temporary accommodation – if the property is unliveable as a result of an insured event. This policy will pay for you to stay somewhere for a set time.
- Motor burnouts – for appliances under seven years old, should the motor burn out.
- Refrigerated food and medicine spoilage – if your fridge is damaged as a result of an insured event.
The Product Disclosure Statement (PDS) will explain which specific event is covered.
We highly recommend calling your insurance representative if you are unsure if your coverage is adequate. They will be able to explain the terms and limitations of your policy.