When it comes time to renew your renter's insurance, there are some things you should keep in mind. Both renters and homeowners insurance require periodic payments, ranging from a monthly premium to a lump sum, and both must be in perfect standing to cover a claim on a liability. Both also need to pay a certain amount of an insurance deductible, unless otherwise stated in the contract. With the vast difference in what each company offers, it can be difficult to determine which is right for your needs.
Most policies for renters will cover damage to the contents of the home as a result of theft, vandalism or fire. This covers all of your belongings except those that are personal in nature. If you own a boat or other type of recreational vehicle, this policy will not cover the cost of repairs due to flooding, hail, or vandalism. It will not cover broken items or personal property in the home. In this instance, it is important to know whether or not your insurance company will cover these items in case of a break-in. Most companies do not.
Home insurance coverage is different for renters than it is for homeowners. The types of damage that are covered differ depending on the type of policy you have. There are generally two different categories of coverage: liability coverage and property damage coverage. Liability coverage will pay if someone is injured while in your home. This is usually paid by you in a lump sum or as an installment payment.
Property damage coverage will pay for property damage to your property as a result of the renter's breach of contract. This includes a lot more than just damage to the outside of the home; it covers damage to your appliances, furniture, carpets and the like. The amount that is covered will vary according to the contract that you signed.
Home insurance coverage will generally only pay the actual cost of replacement if there is damage to your belongings as a result of theft. There are limits to how much of the coverage is actually paid out-of-pocket by you. If you live alone, you may pay nothing out-of-pocket, but it may take several weeks before you receive any financial compensation from the insurance company. or the renter. If you rent, you should always make sure you read the fine print on the agreement carefully. so you are not surprised later by a large bill or unexpected deduction from your account.
While both homeowners and renters have their advantages and disadvantages, homeowners' insurance may seem the most appropriate for those who have multiple residences. and multiple . . . . . . tenants.