Deductibles on Renters Tenant Insurance
Whenever there is a major disaster, be it a storm, flood, fire, etc….you see news regarding how many people did not have homeowners insurance or flood insurance. But you never hear about renter's insurance (also called tenant insurance).
Homeowners insurance is a type of insurance that is required by the mortgage company to protect its interest in your home (as long as you are making mortgage payments, your home technically belongs to the bank). Homeowners' insurance is designed to cover the building, any outbuildings, like sheds or detached garages, and, although the mortgage company doesn't really concern itself with your personal possessions, the contents of those buildings are covered as well. For example, a homeowner's insurance policy that insures a building/home for $200,000 will automatically cover the contents of the home for a determined amount - around $50,000. The larger the homeowner's policy amount, the higher the coverage for its contents will be.
Your landlord is required by the mortgage company to have homeowners insurance; however this insurance will not cover your personal property. His insurance is designed to protect his building in case of damage or against any lawsuits that come up due to accidents that occur on his property.
The numbers varies depending on which report you look at, but overall it is estimated that 70 to 85 million people who rent their homes (apartments and condos included) do not carry renters insurance. Whether they think their landlords homeowners policy will cover, they are not aware that renters insurance exists or they think they cannot afford it.
Renters insurance or tenants insurance covers your personal items within the home or apartment the same way homeowners insurance does: theft, fire, vandalism and water damage not caused by flood, as well as protects your assets should someone slip and fall or hurt themselves in a situation you might be held responsible for.
Just like any other insurance, there are basic, less-expensive plans and then you can find larger, more specific policies tailor made to cover your property should you have more expensive items, collections, arts and antiques you want named on the policy. In some places you can even purchase flood or earthquake insurance, but those policies can come at a higher price as well. Best advice, shop around and speak with an insurance representative to figure out which renters policy works best for you. You can discuss deductibles (the amount you pay before insurance pays out a benefit), monthly cost, coverage and liability limits…and get the best renters insurance plan to protect you and your family.