If you rent your home, you can get a version of homeowners insurance called renters insurance. It is specifically designed for those renting a home, apartment, townhouse, condo or any rented residential space. Just as homeowners insurance is important to protecting you financially, renters insurance is an important protection for you as a renter.
Renters Insurance Versus Homeowners Insurance
There is a major difference between renters insurance and homeowners insurance. The major portion of a homeowners insurance policy is coverage for the structure of the home. This is not coverage that you need as a renter. A renters insurance policy is more specific and usually cheaper than traditional homeowners insurance, but no less important.
Focus Your Renters Insurance
The home, apartment, condo or townhouse you are renting will have a homeowners insurance policy in place paid for by the property owner. In fact, one of the things you should be sure of before you sign a lease, is to make sure the property is insured for liability. If there is faulty wiring in the residence and a fire starts that damages or destroys your belongings, you want to be sure the property owner has a way to reimburse you for these damages. So, when searching for homeowners insurance as a renter, you need to focus on getting protection for your personal belongings and liability coverage.
What Does Renters Insurance Cover
Renters insurance offers you several protections. If a fire or water damage or a myriad of other perils damages or destroys your clothes, electronics or other items you have listed on the policy, the renters insurance policy will pay out according to the terms of the policy. If you happen to cause damage to the structure and/or other’s property, then the liability portion of your renters insurance will pay for those damages. For instance, if you live in an apartment building and a fire is started in your apartment because you have left the stove on, there could be fire damage to your apartment and neighboring apartments. You will be held responsible for those damages and your renters insurance policy will pay for those damages up to the limits of the policy
Renters Insurance Requires a Home Inventory
An important step in getting renters insurance is to perform an inventory of the belongings that will be in your rented residence. This inventory should include the item, a brief description or photo, a receipt if possible or an estimated value. Add up the total value of all items to determine the coverage limit you want on the policy. If you have any especially expensive items you want covered, items over $1,000 in value, you will need to add a rider to the policy called a scheduled personal property rider. Keep a copy of the list for yourself and turn in a copy to your insurance company.
Homeowners Insurance Quotes to Get Renters Insurance
Just as you should do when seeking out traditional homeowners insurance, you should get quotes to find the best deal on renters insurance. Rates will vary for a variety of reasons, so you want to be sure you are getting the best available price on the coverage and service you require. Take a few minutes to gather about 3 to 5 homeowners insurance quotes for renters insurance and you can save yourself a significant amount of cash.