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Renters Insurance For Those Who Don’t Own Homes



An HO-4 homeowners insurance policy is a renters insurance plan that protects the liability and belongings of those who rent the homes in which they live. Prices generally are very reasonable for renters insurance, but many people decide to go without it for many reasons. One common reason is the thought that they don’t have enough things to bother carrying renters insurance. Others might think they simply cannot afford it or that the cost outweighs the benefits. Yet, those notions often times are false and leave renters vulnerable to losses when they don’t need to take on such risks.

Renters Insurance Costs Relatively Little

Most renters insurance plans cost anywhere from about $10 per month to about $20 per month with the rates mostly depending on how much coverage renters might need to protect their belongings. Knowing how much to carry can be determined by taking a regular assessment of furnishings and other belongings and contents, making a list of items owned and their relative value and purchasing a renters insurance plan providing the proper level of coverage. Taking photos of valuable items can help establish ownership as well as their existence, making it easier to file claims and have them paid if a loss were to occur. Keeping receipts also is a good idea, but receipts often times get lost. Whenever compiling a list of items owned, it and any supporting evidence, such as photographs, should be kept in a secure, fireproof place. A fireproof safe or safety deposit box is an old standby, but with the Internet, it is possible to simply upload the information to a secure website and download them if needed.

Common Furnishings, Liability Can Add Up To A Lot Of Money

While many people don’t think their belongings cost enough to protect with renters insurance coverage, even common furnishings can cost a great deal to replace. Dinnerware, silverware, clothing, furniture and decorations can add up to a great deal of money. Audio systems, TVs, sporting goods, tools and other items also can add up to a great deal of cost. If stolen or lost due to a mishap, such as an apartment fire or a natural disaster, the cost of replacing the items could be much more than many renters can afford. A renters insurance policy provides liability coverage as well as insurance for personal belongings, even when away from the rental unit. The liability portion of renters insurance policies will protect not just against liability for injuries or deaths caused to visitors inside the apartment but also can pay for damages to the apartment for which a landlord attempts to hold the renter responsible for losses the renter did not cause.

Two Kinds Of Renters Insurance Plans

Renters insurance policies are underwritten to provide one of two kinds of coverages based on the types of claims payments the policyholder prefers. One variety pays insurance claims based on the actual cash value for items that are damaged, destroyed or stolen from an apartment. Such policies take into account the market value of items when paying claims, and that market value factors depreciation into the formula to determine how much to reimburse people for their losses. The second variety of renters insurance is a replacement cost policy that pays up to policy limits to repair or replace damaged, destroyed or stolen items. Such policies cost bout 30 percent more than their actual cash value alternatives and generally are beneficial to people who might have rare items that can’t be replaced easily, such as artwork, antiques or other items of great value.

 Renters Insurance Is Portable And Helps During Emergencies

The items insured by renters insurance plans are protected even outside of the apartment building and other rental locations. That means the policies are portable and insure items while in vehicles or other off-site locations. If a laptop is stolen from a vehicle or while in a library, for example, the renters insurance plan would cover the loss. Renters insurance also helps out if a sudden emergency forces a temporary relocation. If the rental unit is damaged or some condition forces a sudden relocation for a temporary period of time a renters insurance plan would help pay for the costs of relocating to a hotel or motel while the matter is handled. Power outages are a common example of emergencies that might force a temporary relocation.