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 INSURANCE COVERAGE
Rental insurance coverage is intended to provide to people renting the house in which they live, the same level and kinds of financial fallback protection that property owners have access to. To all intents and purposes, the persons living in rented homes are homeowners with the same coverage rights and responsibilities as property owners, with the exception of responsibility for the structural elements of the buildings they rent. Persons who rent a property to use as an office or other business space are also subject to the same set of rules and requirements. They have a perhaps even greater need for physical damage and personal liability insurance because of the greater numbers of persons who may use their rental space.
Rental insurance coverage is economical and a very worthwhile investment for leaseholders no matter whether they live in rented lofts or townhouses, in a city or in a rural area, and does not matter any less whether they use the premises for business or private purposes.
Selecting Rental Coverage Options
For a person renting a space, having rental insurance coverage could make the difference between an inconvenience, even a massively unwelcome inconvenience, and an incident that ruins a person's financial position way into the future. Rental insurance coverage does not cover every possible contingency, and it will not prevent an accident, but the financial pay out when an accident does occur can be a lifesaver, in many more ways than one.
The basic rental insurance coverage policy offered by all major carriers provides property damage coverage in the case of incidents such as theft, vandalism, fire, things that fall and break, and from explosions in plumbing and air conditioning or water heating systems. The basic list required by the Insurance Services Office contains at least 11 standard perils. With rental house insurance, property damage and loss consequent to any of these incidents is also provided for, so that if a valuable possession is lost from a storage facility or is stolen while the policyholder is away from home, an amount of money equal to either the replacement or the actual cash value of the valuable, minus the agreed upon deductible will be paid out to the policyholder once the appropriate claim is filed.
Liability insurance which provides financial indemnity if a person is injured while on the property is a fundamental clause in the rental insurance coverage policy. If a person visiting the property is injured or is accidentally killed, the homeowner is liable for damages that could include medical expenses, and is also covered for any legal expenses that might come up if a suit is filed. The insurance company will pay the maximum amount agreed to in the policy, again, minus any deductibles.
Rental insurance coverage also does not apply to damage sustained in a natural disaster, unless a specific policy is acquired as an addition to the basic form. If the rental property is severely damaged in a hurricane is and no longer fit for habitation, the tenant will have to secure another place to live, at least until repairs have been completed. The tenant will have to pay hotel and restaurant bills or the rental costs for another apartment out of personal funds, unless coverage had been purchased specifically for hurricanes. That person will also not receive a cash payment for use in replacing furniture, clothes, electronic equipment or other belongings unless there is a natural disaster policy in effect, especially for the aftermath of a hurricane.
Rental Insurance as an Investment
A business person can probably quite easily be made to comprehend the importance of rental insurance coverage for a place of business. He or she will appreciate that protecting moneymaking assets is not an expense, but an investment. Business people keep books of accounts, of profit and loss, and records of assets and liabilities, and easily see the connection, and the potential for great loss is certain investments are not made. Insurance expenses are factored in as a matter of course.
That is not necessarily the case for the person who makes his or her home in a rental. Often they have to be made to see that it is of immense importance to put these instruments in place to protect their assets, their financial future, and perhaps even people they love. Many leaseholders assume that the contract they sign with their landlord or leasing agency when they take possession of the rental property automatically confers the requisite property damage protections and liability coverage. This is categorically not so.
Any coverage that leaseholders have rights to within their private spaces is limited to that which they provide themselves. All coverage for natural disasters or other more standard perils has to be provided in rental insurance coverage that the leaseholders purchase on their own personal coin.