Guidelines for renter’s insurance research
The biggest mistake people make when it comes to renter’s insurance is not getting one. But that is not the only error they make related to it. Besides the cost, there are a few important aspects which should be researched before making the purchase.
Coverage – Items
You should know precisely which of your items are covered by the policy you purchase. Most of them cover the majority of your belongings – clothes, furniture, electronics, and artwork – with restrictions for jewelry, fur coats, and silverware; for these you can buy additional coverage.
Computer equipment is normally also included. Still, if you have a home office and work primarily from there, it may not be included. In this case, you need additional coverage for the business equipment you own.
Coverage – Perils
The typical perils covered are theft, fire, smoke, explosions and water damage from bursting pipes and overflows. However, is your dog knocks over your laptop and breaks it, it will be on your expense.
Coverage for storms is one of the grey areas – damage from wind is covered, but water oozing through the roof is not. If you don’t have a roof to worry about, meaning that you live in a ground floor or below-grade apartment, you won’t be covered in case of floods or excessive rain. The solution for such cases is to create a pathway for the water, to make sure the drains are kept clear, and that pumps are functional. A plus would be the flood insurance.
Coverage – pets
In case your dog bites someone inside or outside of your apartment, the liability portion of your insurance normally covers this, unless your pup is one of the “aggressive” breeds. Click here for more information.
Injuries on your property
Renter’s insurance is reliable in the case when your bathtub or sink overflow and ruin your neighbor’s new floors and walls. Moreover, the liability component covers you for injuries that happen inside your apartment, such as when your babysitter trips over a toy and breaks her leg.
Renter’s insurance will cover your spouse and immediate family members who live with you, but with roommates, things are different. Typically only two roommates can be named on a policy but not without risks: checks for damage are made for both, regardless if it’s your laptop that was destroyed and your roommate has moved out long ago. Click here for more information on a shared renter’s insurance.
Outside the apartment
Typically, renter’s insurance covers off-premises damage caused by fire, damage from burst pipes, and vandalism. Additionally, if your personal property is stolen outside your apartment, it may also be covered. It includes the bicycle you took with you to the grocery store and didn’t find it when you were done shopping and the laptop you had with you on vacation that went missing from your hotel room while visiting museums.