These days, the housing market is highly volatile due to unexpected fluctuations. Because of this, many people choose to rent until they find a good deal or get a mortgage. While a landlord is responsible for insuring the property, renters should also protect themselves while living there. This is where renters’ insurance comes in.
Renters’ insurance is precisely what it sounds like: an insurance policy tailored towards renters. It covers the personal belongings and the building itself in case of theft, fire, break-ins, and other incidents. It compensates for losing your personal belongings and even injuries if you sustain them while living on the property. Few people know about the details of renters’ insurance, so we'll discuss the basics in this article.
More about Renters’ Insurance
Renters' insurance works by covering the primary residence of the insured person. It carries high rates because insurance companies assume that the policyholder won't stay in one place for too long. This also means that the policyholder can use the insurance to insure more than one property. Renters' insurance also applies to additional living space in the same building, such as a basement apartment.
Renters’ insurance is a package policy. It includes personal property coverage, protection against the landlord's building, liability coverage, personal liability coverage, and medical payments coverage.
What Does It Cover?
Renters’ insurance covers the following categories:
Loss of Use
Loss of use is the coverage offered when you can't live in your home due to a catastrophe. For example, if your house is destroyed in a fire, this policy section would provide you with funds to live elsewhere.
Personal Property
Personal property refers to your possessions, and this policy will be helpful because you will be compensated if they are stolen or damaged.
You usually have two options for this, and these are:
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Actual cash value (ACV) - Pays out the cost to replace or repair your belongings based on the smallest amount you could get for them when buying.
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Replacement cash value (RCV) - Pays out the cost to replace or repair your belongings based on the cost of an identical replacement.
Liability
This policy section protects you in case of an accident in the rental unit. It would provide compensation to the injured party if you or your guests were the ones at fault. This section will also cover your legal fees if a lawsuit arises from the accident.
Why It Matters
Insurance sounds like a waste of money if you have nothing to insure. However, renters insurance is well worth the price. It could save you in the long run, and you'll never be able to replace the value of your possessions if they're stolen or go up in flames. Renters' insurance also covers additional living spaces, like the basement apartment. Your landlord's insurance won't cover it, so you'll be on the hook to replace things if they're stolen or destroyed.
Also, property damage laws protect you if your landlord doesn't. If your landlord doesn't repair it, you can sue them. However, if you have renters’ insurance, the policy will cover the cost of repairs and lawsuits brought against you.
Getting Renters’ Insurance
First and foremost, you should assess your situation if you want to decide on whether you need renters’ insurance. Do you own several expensive items? Do you live in a location where there are often burglaries? If so, getting renters' insurance for protection might be a sensible choice.
You can get renters’ insurance by filling out an application, perhaps in the form of an online application. Your insurance agent will also be able to help you with this. If you have a mortgage, you should get renters’ insurance because it will reimburse you for the items and property you have in case of a disaster.
Conclusion
Most people can't afford to replace everything they own. Renters’ insurance provides a monthly payment that covers the possessions you own regardless of the amount of money you have saved up. Even if you live in a relatively safe area, you should still purchase a policy to protect yourself.
If you’re looking for renters’ insurance in Georgia, Brand and Britt Insurance can help you! We offer comprehensive insurance programs to protect you and your valuables, all for affordable prices. Simply go to our website to request a quote!