List of recommendations for obtaining renters insurance

If you live in rent, whether in a house or an apartment, your landlord's insurance covers you only for necessary repairs that would have to be made in case a fire or other disaster damages or destroys the property. In order to cover your belongings, you will need to have insurance known as renters insurance, in order to have the financial coverage you need for yourself and your belongings.

Renters' insurance provides three important forms of protection:

Gives coverage to your personal belongings
Provides liability protection
Allows you to obtain reimbursement of additional maintenance and survival expenses incurred after a disaster

The following list of things to follow when considering renters insurance will help you make sure you get the right coverage when purchasing renters insurance and when talking with your agent, insurance representative, or an independent insurance broker. How Does Renters Insurance Work?

1. Coverage for personal belongings

a) How much insurance should be purchased?

Make sure you get enough insurance to replace all personal belongings in the event of fire, theft, or any of the other perils included in your policy. The fastest and easiest way to determine the value of your personal belongings – furniture, clothing, appliances, electronics, kitchen, and household items – is to create a home inventory. A home inventory is a detailed listing of all your personal belongings with the estimated value of each item. In addition, having an up-to-date inventory of your belongings can help you file an insurance claim if necessary, making the process faster and easier. The Insurance Information Institute offers a free computerized inventory tool that is archived on the Internet and is available at this URL: www.knowyourstuff.org.

b) What type of coverage should be obtained between replacement coverage (Replacement cost) or actual cost coverage (Cash value)?
A policy that provides actual cost coverage pays the value of the affected property less its depreciation, while a policy with replacement coverage replaces your property without deducting its depreciation. The price of a policy that pays replacement cost is about 10% more expensive, but it can be very advantageous since most all personal items tend to depreciate very quickly.

c) Which disasters are covered and which are not?

Renters insurance will cover you for losses sustained in the event of fire, fire, smoke, lightning, vandalism, windstorm, blizzard, explosion, and some specific type of water damage, such as a neighbor from upstairs leaving the faucet running and the water enters your apartment, or a tube bursting in your apartment and damaging your belongings. However, the vast majority of renters' insurance policies do not cover damage caused by flooding. Flood damage is specifically covered by flood insurance and can be obtained from the federal government through the National Flood Insurance Program or National Flood Insurance Program (Phone 1-888-379-9531, www.floodsmart.gov ) or through some specialized private insurers. Your insurance agent or insurer with whom you obtain renters insurance can liaise with the NFIP program to provide you with renters flood insurance. Another peril not covered by renters insurance is that caused by earthquakes. This insurance is obtained separately, either from a private insurer or from a state-assisted program, usually in the form of an endorsement or policy rider to your renter's policy, or separately, depending on where you live.

d) What is the deductible and how does it work?

A deductible is the amount of money that the insured, the tenant in this case, or you, will pay for repairs or compensation before the insurance kicks in and pays for the damages. A deductible is usually expressed in an amount determined by policy, typically starting at $500, $1,000, or $2,000, although higher deductibles may also be available. The higher the deductible, the cheaper the policy premium will be; so if the insured can afford to have a $1,000 deductible, they may be able to get up to 25% off the premium than if they had a much lower deductible. However, it should be noted that this is the amount that you will have to have to pay out of pocket before the insurer begins to pay for the damages when an insurance claim is filed.

e) What is a "floater" or additional policy and who needs them?

If the tenant owns expensive items, such as jewelry, electronic equipment, musical instruments, collections, antiques, furs, or other valuables, additional coverage in the form of a floater should be considered. Most renters policies have a limited amount of coverage for valuable items; what a related or annexed policy does is increase the coverage (amount and type of coverage) and extends the quantity or amount insured to make it more consistent with the value of the objects that are being protected or insured, including if they are lost accidentally. For this, you need to present receipts or purchase invoices or a valuation (appraisals ) of the object to be secured with the “appendix”. It is very important that the objects are properly valued since the amount to replace them will be based on that valuation, and the amount to pay for the insurance premium as well. The insurer or insurance agent can help locate an expert in properly valuing your belongings or valuables. Other items, such as a laptop, may also require a separate insurance policy. Check with the insurer that offers your renters insurance to see if your laptop is included in their insurance and if it has a separate or different deductible.

2. Liability Protection

a) Does the tenant have sufficient civil liability coverage in case of being sued by someone?

Renters insurance provides third-party liability protection that includes coverage against legal claims arising from damage to someone else's home or damage to your property by related parties or property, including pets. This coverage pays for both the costs of defending yourself in court and for the awards that a judge or court assigns to pay as a result of said lawsuit, all up to the maximum coverage purchased under the policy or up to the limits of the policy. Most insurance policies offer at least $100,000 of liability coverage, but there are higher limits as well. Consider what your needs are and get enough coverage to protect all your assets and belongings.

In addition, it is also quite possible that under your renters policy you have a portion known as No-Fault Medical Expense Insurance, as part of your liability coverage. This coverage is solely to pay for medical costs to third parties, is not usable by you or your family, and is not a substitute for your health insurance or medical insurance. Medical payments coverage allows if someone is injured in your home, the insured can make a claim for the costs of medical services to treat those injuries to renters insurance; medical expenses are reimbursed without the need to file a legal claim for them to be paid. Most policies include coverage of between $1,000 and $5,000 for medical payments.

b) Is it necessary to have an umbrella civil liability insurance policy?

People who feel they need more liability insurance coverage may choose to purchase such an umbrella insurance policy. The umbrella policy, as its name indicates, comes into effect to provide coverage above the coverage of existing civil liability policies, that is, when the limits included in the renter's insurance policy for the portion of civil liability. These policies also provide coverage against slander, libel and defamation. For an additional $150 to $300 a year you can purchase a policy of up to a million dollars of umbrella liability coverage. The next million in protection can cost you even less, $50-$75 more. Because the umbrella policy takes effect after the coverages to which it adds protection have been exhausted, there are certain minimum limits that must be exhausted before it takes effect. Most insurers require an insured to have at least $250,000 in liability on the auto policy and a minimum limit of $300,000 on an existing homeowner's or renter's insurance policy before an umbrella policy can be obtained or purchased. liability for an additional one million dollars of coverage.

3. Reimbursement of additional maintenance and survival expenses ( Additional Living Expenses ) in the event that it is not possible to live in the rented property, what is covered?

If the property is destroyed by a disaster that is covered by the policy and it is essential that the tenant moves to another place, the renter's insurance provides a portion of the money that will allow paying the additional expenses to the housing that are incurred by said event (in English it is known as additional living expenses - ALE) or loss of use of facilities. The insurance portion of ALE pays for hotel bills, temporary rentals, restaurant meals, etc. when the leased facility cannot be used while it is being rebuilt or repaired for use. It is essential that renters know how much coverage they have for these expenses and what their limits are. Some companies offer coverage defined in a number of days or a portion of time while other companies have a certain number or maximum amount to be paid.

4. Other coverage included in renter's insurance

a) When operating a business from the rented residence, is it necessary to obtain additional coverage for the business?
A renters insurance policy typically only provides $2,500 of coverage for business equipment, which is usually not enough to replace all the equipment in a business, even a very small or home-based business. In addition, the business may also need to replace the income it would lose while the rental is being fixed up. Business insurance varies greatly depending on the things that are handled in the business. Some companies may need very specific things depending on the type of work and the insurance for these lines. Insurance companies have several mechanisms to help meet those needs and there are some that may offer such insurance while others do not, all depending on the specific type of business.

b) Do I have any coverage for my belongings when I am away from home or traveling?
Most renter's insurance policies include coverage for belongings when they are outside of the regular residence. This means that your belongings outside and inside your regular residence are covered against basically the same disasters as if they were in your home. For example, property stolen from your car will be covered by your renter's insurance up to 10% of the total personal belongings coverage you purchase. If you think you'll need additional coverage for excess personal belongings, for example, for people who travel a lot, shop around among potential insurers that offer those attachments or floaters you may need.

5. Discounts available

Insurers often offer discounts to renters if they have another insurance policy with the company, be it auto or business insurance. You can also find discounts if…

Do you have a home security system?
Use smoke detectors
The doors are equipped with good locks
He has several policies with the company
Policyholders have a good credit history
Has a track record and seniority or loyalty with the insurer
The insured or tenant is over 55 years of age

Often, insurers offer discounts to the many people interested in insuring their belongings and these can vary from one company to another, from one state to another, and therefore it is essential to review the insurance laws with time and calmly to know how they are affected; In the same way, employers and employers could administer group insurance with which to offer better rates than the traditional ones that can be found anywhere.

List of recommendations for obtaining renters insurance