Apartment insurance, also called tenant homeowners insurance or renters insurance , may be the best insurance bargain offered to consumers. Policy holders get a lot of benefits for a low cost.
Apartment insurance,
also called tenant homeowners insurance or renters insurance , may be the best insurance bargain offered to consumers. Policy holders get a lot of benefits for a low cost.
Many apartment complexes, and many smaller landlords, require their tenants to carry this insurance in their lease. Even if you are not required to purchase it, it still makes a lot of sense.
Apartment Renters insurance contracts are most often written on a standard HO-4 policy form. These contracts provide coverage for 4 distinct types of losses for 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 the belongings of the insured anywhere in the world for things like fire, theft, and vandalism. Worldwide coverage means it covers clothes stolen from your bags outside of the US. It can also cover you 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 plan 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 firearms. For an extra cost, some of these coverages can be added onto the contract via endorsement.
Additional Living Expenses coverage, 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 a part of the standard renters policy. It pays 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 bicycle accident involving a child.
Medical Payments coverage provides a limited amount of coverage for the cost for medical care, 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 should someone breaks a leg after tripping on a kid's toy, and doesn't live in the household, Medical Payments coverage can apply. Keep in mind, only the insured can file the claim.
Currently, a renters insurance policy will cost around $150 or $200 annually, 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 renters 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 the household insures their automobiles with the same carrier, the savings can actually be MORE than the renter's insurance costs. This can mean that you get the renters insurance policy without paying more than you pay for the auto insurance policy. The combination of lowering your premium and increasing your protection, is what makes the renter's one of the best deals in personal insurance.
