If you live in a rental property in McAllen, TX, you must consider insuring your assets to stay financially protected. It is a common misconception that a landlord’s insurance policy covers the personal belongings of the tenants. The renters must understand that it only covers the damage caused to the rental property.
Therefore, it is essential that you stay ready to face any unexpected situation that may occur, either due to a natural calamity or personal situations. To save their belongings it is suggested that the tenants buy an insurance which will offer them
Difference Between Renters And Landlord Insurance
Landlord insurance has coverage only for the infrastructure where the tenants dwell. Whereas, a renters insurance covers the protection of occupant’s personal property and belongings like electronics, furniture, clothes, jewelry etc.
Reasons why tenants should buy a renters insurance.
The insurance is not expensive – Renters insurance is affordable than any other policy and paying small sum of premium can offer long term protection. The rates of the policy will depend on various factors like how much property is being covered, type of coverage desired, deductible amount and the area where the tenant lives.
Installing smoke detectors, burglar alarms and fire extinguishers are some precautions that the occupants can take to reduce the price of renter’s insurance.
It covers losses to tenant’s property - A renters insurance works much as homeowners insurance, the only difference is that it has been designed for tenants. It secures occupant’s personal items such as clothing, electronics, furniture, jewelry etc.
Renter’s policy also safeguards tenant’s valuables against damage caused by -
- Falling objects
- Fire or lightning
- Vandalism or malicious mischief
- Windstorm or hail
- Destruction caused by the sprinklers or water heating devices present in the house.
It protects tenants belongings while traveling – If an insurer faces any kind of damage to his belongings while traveling, renter’s policy covers the loss.
A landlord may require it – Some landlords may expect their tenants to buy a renters insurance for themselves because, their policy does not holds responsibility for occupant’s personal property. Renters insurance may also shift some burden from owner’s side shift it to the people living in the property.
The policy offers additional benefits - In case the home in which tenant’s lived is faces any damage due to the reasons covered in the policy, and the tenants have to find a temporary accommodation, renters insurance has the provision for it as well. The insurance company will pay for the cost associated with living, food and more.
Secures tenant’s liabilities - If under certain circumstances, a guest in the premises of the tenants gets injured, he becomes liable to sue the owners. In such cases renters insurance has the provision to pay for the medical expenses of the injured person. Up to a certain limit the policy also pays for court judgement and proceedings.
Protection against damaged caused by tenants – If tenants cause damage to the property they are living in the neighborhood, they will be liable to pay for the destruction. In such case renters insurance can be a boon and help the occupants to remunerate.
Points to consider before buying a renters insurance –
- Choose the right coverage amount
- Consult a professional
- Take Referrals
- Understand coverage types
- Opt for high deductible
- Know what all things are not covered under the policy
- Make sure whether the insurance provides ACC (Actual cost coverage) or RCC (Replacement cost coverage) for your property.
Renters insurance provides financial security to the tenants when they are at home, travelling or on vacation. The coverage that the policy will offer depends upon what items the insurer wants to protect and type of property he lives in.
Unlike other policies, the quotes for renters insurance are easily available online. So, persons living as tenants can easily compare different policies and buy an adequate plan for themselves.
At Smith-Reagan Insurance Agency, we provide renters insurance in McAllen, TX. Our agents will help you to understand all the aspects of an insurance policy. For more details, call us at (956) 399 – 1353.