Renter’s insurance exceptions
Renting has been on the rise for many years now. The American dream may have everything to dowith home ownership, but the current economy favors renting and people should understand what it takes to be a smart renter and how the lifestyle can be improved.
One of the simplest ways to do so is to make sure your possessions are insured. However, know that not everything you own can be insured through a renter’s insurance policy.
- Natural disasters – flooding is a very common natural disaster that occurs throughout the country, yet renter’s insurance won’t be of any use if your belongings are washed away by a flood. This type of peril is only covered by flood insurance. There is another catch through—the policy has a waiting period of up to 30 days to become effective. There are a few exceptions, determined on a case-by-case basis review of those impacted by flood. These include properties affected by flooding on federal land; instances where the flooding is caused, or exacerbated by, post-wildfire conditions on federal land; and where flood insurance was purchased no later than 60 days after the wildfire containment date. Sinkholes and earthquakes also need a separate policy.
- Your roommate’s items – your renter’s insurance will not cover your roommate’s belongings. Despite the fact that you live together, unless both your names appear on the policy, only your items will be protected by renter’s insurance. typically, you can share a policy with your roommate, but not always. Make sure you research thoroughly before making such a decision. More details here.
- Faulty property management – this is one of the most common renter’s insurance claims, but in fact this policy won’t offer any kind of protection. If faulty plumbing is what led to a leak that soaked your furniture, your insurance policy won’t help you cover the cost of replacing that furniture. This also applies to faulty wiring that causes an electrical fire.
- Expensive stuff – if you own expensive jewelry, sports equipment, artwork or collectibles, a basic policy won’t cover them. In this case, you should purchase a separate insurance policy. Pro tip: have them appraised by a professional.
- Cars, electric bikes and the like – if your possessions disappear from inside your car, renter’s insurance has your back. But if your car itself disappears, or you find it damaged, renter’s insurance is powerless. In fact, the policy doesn’t cover any motor vehicles (thus including electric bikes and scooters, too), that’s what auto insurance is for.
- Undocumented items – you must prove you own your items and their value if you wish to add them to the policy. Make sure you keep receipt of the stuff you really care about more, and make a photo inventory of everything. The best way to keep this inventory safe is in the cloud.
- Damages to the structure of the building – renter’s insurance covers your belongings, not the physical building that holds your belongings. That part falls under your landlord’s responsibility and his homeowner’s insurance.