Renters insurance is one of the most misunderstood types of coverage available. Many tenants mistakenly believe their belongings aren’t worth enough to warrant financial protection or they don’t need to purchase a policy since they don’t own the property. If these are the same thoughts that have crossed your mind, it’s time to learn the truth about renters insurance and how it can help you should disaster strike. The experts at CIS Insurance are committed to helping residents in Dumas, TX, find affordable coverage to suit all their personal and commercial needs. Below, they go over a few important facts to know about renters insurance.
What You Need to Know About Renters Insurance
Types of Policies
In the event your personal belongings are stolen or damaged, there are two types of policies you may consider as a renter to provide you with replacement funds. The first is an actual cash value policy, which will pay you the amount your possessions are worth minus depreciation. The second offers replacement cost coverage, paying out the actual amount it will cost you to replace your items. Most policies typically have limits, but you may choose to add extra coverage if you have valuables that exceed them.
What Is Included in Coverage
Aside from your personal property, a standard renters insurance policy will generally cover liability claims and additional living expenses should your home become uninhabitable from a disaster and you have to stay somewhere else. Any loss of belongings must be from a covered peril, such as a fire, hail, lightening, smoke, vandalism, theft, falling objects, or damage caused by failing appliances, plumbing, or an HVAC system. Liability protection will cover you if someone is injured inside your living space or if you damage someone else’s property.
Your Landlord’s Policy Won’t Protect You
Another common misconception among renters is their landlord’s policy will cover them as well. The truth is landlords only have coverage for the building itself and the property it sits on. This means nothing inside your unit will be protected. Without your own policy, you will be responsible for paying to replace everything if you experience a loss. You also won’t be covered if you accidentally cause any damage to the building, and your landlord can hold you financially liable.
The more you learn about renters insurance, the better informed you will be to make the right decision about coverage. Contact CIS Insurance at (806) 935-6512, or visit their Facebook page for additional information.