For most renters it is not a bad idea to purchase insurance to cover your personal items. This is always best when you are renting from a commercial business rather then simply paying a relative to provide you a room in their private home. However when you apply for renters insurance you should understand that not every incident is covered. You should also decide on the amount of coverage you want and what deductible fits your needs.
Because many insurance companies now offer free online quotes you should gather all of the information you need and go through the process of application. In the end you should have a pretty good idea of what your monthly and annual costs will be.
Making your payment can be done online, at a insurance company’s local office or by phone and mail.
The cost is usually under $25 a month and well worth it if you happen to need it.
When requesting a price quote you should look closely at what is and what is not covered.
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What does Renters Insurance Cover?
For the most part renters insurance will only cover personal items that are damaged by a select number of causes or thefts of your belongings.
Renters insurance may not cover items that are stored in your location if they are used for business reasons. If you own a business then you will need to purchase liability insurance which should have some theft coverage for your tools and other business items.
What is the renters insurance application process like?
First thing you need is information about the location you will be living and then your own personal information including the amount you wish to select for your coverage. Normally coverage is sold in tiers of $20,000 worth of assets.
Location is very important and you will need not only the zip code but the street address and apartment unit that you will be living in. If you are
You will also need to disclose information about yourself and anyone that is living with you. This is important if you are sharing a home or an apartment.
Whether you run a business or a daycare.
You will also have to disclose things like if you have any pets and in a related question one insurance provider asks you if…
Do you have any wild animals as pets?
I am not sure if its just because of the zip code I entered heheh maybe people in that area keep wild animals.
When you have completed the application you will get a notice on how much your policy will cost you.
What Is Not Covered By Renters Insurance
As we saw above the items in your home that are use primarily for business will not be covered.
In addition things like trailers other then boat trailers are not covered. This is probably because they are a sought out and easily stolen item. So, even if you have a trailer for personal use only like camping it is likely it won’t be covered.
Natural Disasters like Floods, Hurricanes and nuclear events are not covered. But Riots are.
Limitations will be covered on the amount of items such as
Money, bank notes, coins (including collections)
Property used or intended to be used in business
Watercraft and equipment
Securities, checks, traveler’s checks, gift cards, phone cards
Trailers (not used with watercraft)
Stamps, trading cards, comic books (including collections)
Home Computers
Theft loss of:
Jewelry and Furs
Firearms
Silverware and Goldware
Rugs, tapestry, wall hangings
What can you do if items are not covered?
Some items can be covered by other policies. You should talk to your insurance provider about how you can purchase other insurance and you may also want to think about storing that trailer in a storage lot where they will insure its value.
Optional Renters Insurance Coverages
Coverages available for an additional premium include but are not limited to:
Identity Restoration.
Earthquake damage.
Increased business property.
Incidental business liability.
Increased liability limits.
Final Note
It is worth your time to think and investigate the cost of renters insurance. Today a washer dryer set can cost you thousands and if you have a media center or expensive clothes then it can be worth the monthly payment.
Some apartments will require you purchase renters insurance and if you can not afford full coverage you should at least think about the lowest cost plan to cover some of your belongings.
Home owners insurance and Renters insurance are a value to you depending on many factors.
If the cost is minimal to your budget and if you have expensive items take the time to get a quote even if you later decide it is not worth your time.
Additionally there are related insurance coverages such as theft of your auto, business insurance and other riders that can help you get back to where you were if a problem happens.
BUT read the fine print! as we saw flood damage is not covered so if you lived in an area where you lost everything due to a flood you would not be covered.. however the building owner should have flood insurance.