Frequently Asked Questions
Most renters never even give a second thought to renters insurance and if they do they naively assume the landlords insurance would cover their belongings in the event of a loss. Unfortunately, that is not the case because the landlords insurance only covers the structure, not the personal belongings of the tenants or even the liability within the unit itself.
Take a minute to consider the value of your furniture, television, stereo, computer, jewelry, clothes, and other items. They likely add up to more in value than your automobile. Also, consider the event where someone is injured in your rental unit due to your negligence and sues for damages. How do you insure that you are covered for these unfortunate mishaps?
That’s where renters insurance comes in.
Not only would your personal possessions be covered in the event of a loss, whether it be from: theft, vandalism, fire or lightning, hurricane or tornado, explosions, damage from smoke, damage by broken glass, and water-related damages from home utilities, but you would also be covered if someone were to sue you for negligence that was deemed unintentional. In today’s world, carrying coverage for a list such as these is not only smart but imperative.
All renters must realize that going without renter’s insurance means they would have to start from scratch in the event of a tragedy. In fact, it is becoming more common for landlords to require their tenants carry renters insurance. For as little as $12 per month, it is definitely smart to consider having renters insurance.
Take a minute to consider the value of your furniture, television, stereo, computer, jewelry, clothes, and other items. They likely add up to more in value than your automobile. Also, consider the event where someone is injured in your rental unit due to your negligence and sues for damages. How do you insure that you are covered for these unfortunate mishaps?
That’s where renters insurance comes in.
Not only would your personal possessions be covered in the event of a loss, whether it be from: theft, vandalism, fire or lightning, hurricane or tornado, explosions, damage from smoke, damage by broken glass, and water-related damages from home utilities, but you would also be covered if someone were to sue you for negligence that was deemed unintentional. In today’s world, carrying coverage for a list such as these is not only smart but imperative.
All renters must realize that going without renter’s insurance means they would have to start from scratch in the event of a tragedy. In fact, it is becoming more common for landlords to require their tenants carry renters insurance. For as little as $12 per month, it is definitely smart to consider having renters insurance.
Insurance companies will check your driving history but it won't prevent you from getting coverage. It does help a company decide on the risk when they issue you a policy, which may result in a higher premium.
If you want to lower your monthly premium, or buy more coverage for less money, one way is to carry a higher deductible. A higher deductible also may make sense if you believe that your chances of making a claim are remote enough to warrant assuming extra financial risk.
It depends on the type of policy you own. But in general, unless you buy additional coverage, you won't be compensated for losses due to floods, earthquakes, nuclear accidents, wars, intentional damage, and normal wear and tear. Other exclusions may also apply.
A home can require a tremendous investment of money, time, and energy. Homeowners insurance is designed to protect that investment by insuring the actual structure or structures and the personal possessions in and around them, as well as providing liability protection for the residents. Through homeowner's insurance, you can protect yourself and your family from enormous loss in the event of damage or destruction to your home and property. Most likely, if you have a mortgage on your home, you are required to carry homeowner's insurance.
You can purchase additional coverage, through an endorsement to your existing policy or with a separate policy, to extend the limits of coverage for specific items.
After an accident or theft recovery, if the insurance company decides your car is "totaled," it means the estimate of repairs exceeds the car's value. At this point, the insurance company will likely send you a check for your car's value. It gets to keep your car unless you make arrangements to buy it back "as is".
If you were not at fault in the accident, you will make a third-party claim to the at-fault driver's insurance company. Because you are the claimant, the insurance company typically will issue the check directly to you. It's your responsibility to pay the repair shop, and the lender if you have a car loan. If the other driver doesn't have insurance, your uninsured motorist coverage will take effect.
If your car was stolen, be prepared to wait. Most insurance companies will impose a waiting period to see if the police recover your car. If your car is still missing after the waiting period, usually 21 days, you should receive a settlement soon after. If your car is recovered during the waiting period, the insurance company will want to see a repair estimate before deciding how to proceed.