Renting A Home? 4 Things You Need To Know About Renters Insurance

Posted on: 6 August 2019

If you rent a house and you don't currently have an active renters insurance policy, you need to change that as soon as possible. Being without renters insurance can leave you facing quite a few problems if the home you're renting is damaged in a flood, fire, or another disaster. Here are four things you need to know about renters insurance.

Your Landlords Insurance Won't Cover Your Losses

If you're like most people, you probably think that your landlord's insurance policy will protect your belongings. Unfortunately, that's not actually the case. The insurance your landlord has for the home you're renting will provide protection for their investment, meaning that the home is covered for losses, but not your belongings. Not only that but if your landlord doesn't have adequate insurance coverage, their home might not be covered either. If the home you're renting is destroyed, the only way to ensure coverage for your losses is to have renters insurance.

You Need to Know What Your Insurance Covers

If you're going to purchase renters insurance, it's important that you know what your policy will cover. To make sure you have the protection you need, look at three key components of the policy before you purchase it. First, your policy should provide replacement value compensation for your belongings. Cash value compensation only provides for the current cash value of your property, which might be much less than the cost to replace an item. Second, make sure that your renters insurance policy provides for emergency housing. This will ensure that you have a place to live should the home you're renting be destroyed. Finally, choose an insurance policy that provides protection against liability. That way, you're not left personally liable for accidents or injuries that occur on the property while you're renting a home.

Your Renters Coverage Starts Right Away

If you don't have renters insurance, now's the time to contact an insurance company, such as Woodmansee Insurance Inc. With some companies, your protection will begin as soon as you pay the insurance premiums. That means you won't have to wait for your protection to begin.

You Need to Update Whenever You Move

If you plan to move into a new rental home in the future, you'll need to update your insurance policy. Renters insurance policies only cover the rental home that you're currently living in. If you move, and you haven't updated your policy information, you might be left without adequate protection should a disaster strike. To ensure continued coverage, always update your policy whenever you move.