What People Are Saying
Thanks for making it easy to find the cheapest renters insurance. Knowing our stuff is always protected gives me peace of mind.
Matt and Bethany, Charleston SC
RENTAL HOUSE INSURANCE
Rental house insurance is not considered an absolute necessity by many people who rent the house in which they live, and in which reside some of the most valuable people in their lives, or in which are stored their most prized possessions. This is unfortunate, because these are things to which special attention should really be paid, and special protection given, because these are the most likely to cause anguish if they were lost, damaged, or injured. Although the possession of an insurance policy does not offer any actual protection from damage or injury, it does provide some resources with which to manage a recovery.
A large part of the issue of tenants neglecting to purchase rental house insurance rests in the fact that many people do not know that their landlord's homeowners' insurance policy does not provide any protections for them. They know that property owners who rent their buildings to others will generally have an insurance policy to protect themselves and their financial assets, and infer from this that the apartment unit, condominium, townhouse, or loft in which they reside is also covered to the same extent. This is not so.
Often, too, people regard insurance as an unnecessary expense if they don't own costly items such as valuable artwork, or fur coats, and the like. Many do not understand how homeowner's, office renters insurance, or rental house insurance works, and so are not aware that the contents of their house, whatever they are more or less, can be insured against loss or damage. They fail to appreciate also that there is also liability attached to their entertaining guests at their home, even if it is a rental property, so they neglect to acquire appropriate indemnity.
Why Rental Coverage is Important
People who own their homes understand the importance of having coverage against things like fire, theft, and natural disasters. Even then they sometimes choose not to insure their property in case of an incident. They are optimistic, not necessarily negligent. Human beings, in general, view the likelihood of suffering a catastrophic loss or serious accident at home as something that happens to others. However, it is the nature of accidents to happen indiscriminately and at random.
Rental house insurance, like all other kinds of insurance, is bought as a back up, to provide support in case there is an incident of damage, injury, loss, or death that requires poses a financial responsibility. Criminals and vandals break into homes all the time, particularly in highly populated areas, but also in the suburbs and in rural areas. People fall and get hurt every day, in their homes and in the rental homes of their friends and relatives. If there is no liability protection for the homeowner because that person neglected to purchase rental house insurance, there is no financial support to help cover the expenses, legal fees, medical bills, or repairs.
Rental house insurance also provides financial coverage for making repairs and for replacing lost or stolen possessions. The standard, or basic, form of rental house insurance includes clauses that detail the coverage provided for the homeowner, and the maximum amounts that will be paid in any or each event. These figures are all either decided by the policyholder, or are recommended by the agent, and affect the premium that must be paid at term intervals in order to maintain coverage. A standard list of risks is provided for in the basic coverage and liability policy, and includes damage to property or bodily injury sustained from falling objects, exploding plumbing, water heaters, and air conditioning systems. It makes allowances for valuables that are accidentally lost whether from the rental house or any another location.
To this standard form rental house insurance will need to be added riders for natural disasters and extraordinary circumstances. Natural disasters are appended to the basic rental house policy and are called riders. They are very specific, each rider addressing one particular peril. Earthquake, landslide, volcanic eruption, hurricane are some of the more common natural disasters against which a person living in a rented house would purchase insurance coverage.
Which Valuables to Insure
Naturally, if the homeowner is the owner of valuable artwork, or expensive jewelry, rare books, antiques and such, that are recognized as being worth a lot of money, or that are probably irreplaceable, that person will quite likely purchase rental house insurance. In other worlds, where the most expensive possessions might be appliances or basic furniture, fewer people tend to purchase property damage coverage. However, although replacing one or two appliances might not constitute a financial burden, the cost of replacing every stick of furniture in even a small dwelling is quite another matter. For the person living in a rental or any other kind of house, it could mean disaster.