Do You Really Need Renters Property Insurance?
Posted by admin | Posted in Property Insurance | Posted on 02-11-2009
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If a person is renting a house, an apartment or a condominium unit, the renters property insurance will cover the losses sustained by his or her personal property. The landlord’s policy, also called the commercial property insurance, covers only the physical dwelling or the house itself. It does not insure all the contents of the house against fire, theft, flood and other natural disasters. These concerns are left to a renters property package to cover. Also called the tenant’s policy, this insurance product offers liability protection covering unintentional bodily injury or property damage caused by the home contents to others.
Unlike the landlord’s policy, the renters property insurance is inexpensive if you consider the amount of money and property one stands to lose in the event of a fire, theft or a national disaster. This type of policy offers tenants a means of protecting themselves against unexpected financial difficulties.
A renters’ policy covers named perils. This simply means that the policy specifies what a policy-holder is insured against. Some of the more popular named perils are fire, theft, vandalism or malicious mischief. Some companies bundle coverage for national disasters under the heading allied perils, which can include lightning, flood, windstorm and earthquake.
Renters need to clarify whether their policy includes actual cash value or replacement cost. Actual cash value offers to pay for the cost of the property at the time it was damaged or stolen, while replacement cost covers the cost of replacing an item. Replacement cost will have a higher premium but the pay out is more substantial when a claim is made.
It is prudent for renters to declare the particularly valuable items they possess. Expensive items might need an altogether separate rider policy with a separate premium. Renters also need to take a thorough inventory of their belongings prior to taking out renters insurance. It may also be wise to take a video or photographs of their belongings for a more accurate documentation.
If a rented dwelling becomes unlivable due to a fire or any other reason, the renters property insurance will pay for additional living expenses, which basically means that the policy will shoulder the cost of renting another place to live in. Clearly, this type of insurance is a must for renters. We all work hard to acquire the things we like to have and it is only appropriate that we also set aside funds for an insurance that would protect our precious belongings against all kinds of losses.
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Help answer the question about property insurance
Where to get Commercial property insurance?I have just purchased an investment property that has 3 apartments and a storefront in NJ. I am just having a hard time to find an insurance company that covers commercial property.
Do you know any good insurance company that carry this type of coverage?
Renters insurance does NOT include building coverage. It includes your stuff. Minimum coverage limit is $15,000, and you should be able to get a policy for about $150 a year.
In general – no.
In order for the tenants property to be covered- they need to have a renter policy.
However, your best bet is to follow up with your agent and talk to them about the situation.
Great question!
When it comes to your stuff, there are two different types of coverage. Replacement Cost or RC, will give enough money to buy all new things. So if someone stole your 5 year old 40" TV, they would give you enough money to buy a new 40" TV. Actual Cash Value is the other type, it accounts for age and condition. So using the TV example again, you would get what you could have sold the TV for right before it was stolen. Obviously, RC is much much better so make sure your policy is RC.
With that in mind, you should take an inventory of everything and price for what it would cost to get new again. Total it up, add a little cushion and that's what your personal property coverage should be. Receipts aren't necessary, but photos are a great idea, especially for the more expensive items. It's also great idea to have yourself in the photos as well (proof you own them and not your neighbor). Save those pictures online somewhere (email them to yourself) or save copies at someone else's house.
Home insurance is actually very flexible. I don't understand all the details of my homeowners policy, but my homeowners insurance agent is always helpful. Try calling your agent or a agent in your town. http://www.americaschoicetoday.com/Home-Insurance.html They should be able to assist you.
No, renters insurance and homeowners insurance are two different things. If you own your home, you need homeowners insurance with a personal property rider that covers such things as jewelry, computers, tv and electronic equipment. Homeowners insurance covers the house and its contents.
Renters insurance is for people who rent a house or apartment and want to cover the contents only. They can't insure the building, only their furniture, etc.
Do you live in it, or rent it out? If you rent it out, you need "dwelling" coverage as opposed to "homeowners". But when you talk to an agent there, you're going to find out it's probably going to end up in the state fund anyway, because no one is writing new property policies in Florida.
Renters insurance, is also called "tenant homeowners", if YOU are the renter. It covers your stuff, and your liability, in your rental – whether it's a house, condo, or apartment.
Homeowners insurance is for owner occupied homes.
Dwelling insurance is for a house that you own, but rent out to others.
Condo insurance covers condos, and the same policy works if you're occupying the condo yourself, or renting it out to others. You just have to declare the occupancy when you get the policy.
Home insurance covers lots of different things. I don't understand all the fine print of my policy, but my homeowners insurance agent is always helpful. Try calling your agent or a agent in your city. http://www.easyhomeinsuranceguide.com They should be able to help you.
As long as they require it from the entire complex it is completely legal.
That policy should cost around $5/month. You may want to try a website that compares multiple companies at once to get you the best price. I am paying less than ½ after I did.
Go to: http://www.insureme.com/landing.aspx?Refby=616162&Type=home
Take care,
Casey
You say you have a dwelling policy on your rental so I'm guessing it's residential (1-4 units) and it's properly insured as a rental. Who owns the property, you personally or through a corporate entity? If it's personal you can try a company called RLI (public company, look up their web site and find an agent). They allowed umbrellas without supporting business. If it's owned by a corporate entity, you'll need a commercial policy with commercial umbrella.
You may want to inquire if the dwelling policy can be bumped to $500K on liability limits. My blog has an article on dwelling coverage for rental properties you may find interesting.