Renters Insurance Basics

Renters insurance, also called tenant homeowners insurance or apartment insurance, is probably the single best "deal" in the insurance industry. Policy holders get a lot of coverage for a low monthly cost.



Most apartment complexes, as well as a lot of smaller landlords, require their tenants to carry this insurance in the lease. Even if you are not required to purchase it, it still makes a lot of sense.



Renters insurance policies are most often written on a standard HO-4 policy form. The HO-4 policy form consists of four coverages "packaged" together at a low price. The coverages include Personal Property, Additional Living Expenses (sometimes called Loss of Use), Personal Liability, and Medical Payments.



Losses involving personal property occur frequently. Personal property coverage is part of the HO-4. This covers much of the personal property of the insured anywhere in the world for things like fire, theft, and vandalism. Worldwide coverage means it covers gifts stolen from your suitcase in another country. You can also get reimbursement if your personal property is stolen from the back seat of your auto. Property coverage is on a named perils basis – that means that the contract says exactly what it's covered against, and if it's not listed, it's not covered. Examples of uncovered loss, would include leaving a laptop behind after exiting a bus, or damage to a television by a thrown baseball. The contract also includes built in limitations of coverage for things like cash, jewelry, documents, and handguns. For an extra cost, some of these coverages can be extended onto the contract via endorsement.



Loss of use protection, can pay for temporary lodgings and related increased costs should your apartment become uninhabitable due to a covered peril. Most frequently, this is invoked due to a fire in the unit.



Personal Liability is also an important protection. It can cover the costs for lawsuit defense and judgment payment for the insured if they are sued for a covered cause of loss. This typically includes dog bites, slip and fall claims from visitors, or even a tripping accident involving a child.



Medical Payments coverage pays for a limited amount of medical bills only coverage, for someone who is injured on the property who is not a resident. This is "no fault" coverage . It doesn't matter who caused the injury. It won't matter how it happened, or who was at fault for it. For example if someone walks into the wall and breaks his or her nose, and doesn't live in the household, Medical Payments coverage can apply. Keep in mind, only the insured can file the claim.



Currently, an apartment renters insurance plan will cost around $150 or $200 per year, for $20,000 of coverage on contents, $4,000 of additional living expense, $100,000 of personal liability, and $1,000 of medical payments coverage. Better yet, if a tenant homeowners and auto plan are written with the same insurer, they will usually offer discounts on BOTH policies, from 10% to up to 40% depending on any individual company, with an average being around 25%.



Because the cost of apartment insurance is so low, even the tightest of budgets can usually find a way to manage the cost. In fact a multi-policy discount can make the rate extremely low.



If you insure your automobiles with the same insurance company, your premiums can drop by a greater amount than insurance for renters insurance costs. This can mean that you get the renters insurance policy without paying a greater amount than you pay for the car insurance policy. That combined DECREASE in insurance cost, with an INCREASE in coverage, is what makes the renter's one of the best deals in the insurance industry.



The author writes on his blog frequently. His most recent posts include one about how does house insurance workYou can also get quotes for homeowners insurance on Alston J. Balkcom's website.