The Sarasota area represents an active rental market. If you are a tenant, you bring your important belongings from place to place. Rental insurance is recommended for anyone who lives in someone else’s property.
Property owners who rent to tenants typically carry commercial property insurance to protect them from loss. But this type of coverage, which applies in case of a fire or building damage, only covers the landlord and the building – not the belongings of the resident tenants. Whether a house, condo or apartment, rental insurance can be used to replace personal items should there be a disaster.
Rental Insurance Coverage Explained
What Are Named Perils?
The basic purpose of renters insurance is to cover the contents of your rented residence. Named perils are those situations which are outlined in your policy which are applicable for reimbursement.
- Fires and smoke damage
- Explosions
- Plumbing issues or electrical malfunction
- Theft or vandalism
- Lightning damage
- Windstorms or hail
- Riots
- Vehicle or aircraft damage
Temporary Housing for Loss of Use
If your rental property cannot be lived in because of a named peril, you will need a place to live until the repairs are finished. Many renters insurance policies will offer reimbursement for temporary housing. All renters should read their policy to determine if this coverage is included in their policy.
Important Note: Travelers may also have coverage for luggage and the contents of their vehicle.
Liability Coverage
Most rental insurance policies include some level of liability coverage. The coverage protects against lawsuits if a visitor to your home is injured or suffers other damages. A liability policy will cover legal costs and any court judgments or settlements, up to your policy limits.
What Is Not Covered By Renters Insurance?
Not every situation is covered by a rental insurance policy. For instance, most policies do not cover sewage backup, floods, earthquakes and other acts of nature.
If you own valuable items, such as jewelry, antiques, fine art collections, expensive musical instruments or technological equipment, separate riders may be necessary. Rental insurance will not provide coverage for your belongings if you were negligent.
How Much Renters Insurance Do You Need?
Most individuals don’t understand the total value of their personal belongings. When determining how much insurance you need, first create a list of your possessions. Be sure to estimate the value for each item. The total value of your possessions will hep to determine the total amount of coverage which will be necessary.
Expert Tip: Create a video to records your items, including serial numbers. Keep the video inventory in a safe place, in a safety deposit box or with a family member. You can also save the video in the cloud to guarantee it is not destroyed by a fire or other disaster . You can also email the video to yourself and keep it in case you need it.
How Much Does Renters Insurance Cost?
Your rental insurance premiums depend on several factors, including your geographic location, the amount of coverage required, and the insurance company you choose for your coverage. At Anderson & Associates Insurance, we have the knowledge and expertise you need to determine the best coverage for your needs. Call our office for information on rental insurance, car insurance, or any other of your insurance needs.
