If you’ve already decided you want to get renter’s insurance the next step is to understand what is covered in your policy. It’s important to pay attention to the four types of coverages. Today we’ll talk about these types of coverage and what to watch out for when you are choosing your renter’s insurance policy.
It is imperative to understand that each insurance company has different exclusions and coverage limits. Not understanding what’s excluded, what’s covered, and for how much could lead to problems and frustrations down the road when you have to file a claim, which no one wants.
There are four main types of coverage:
- Personal liability – Accidental damage or injury (including pet bites) to someone else fall into this category.
- Personal property – Anything that belongs to you that isn’t part of the physical structure of the place you are renting — sometimes pets can make this category, too.
- Medical Payments to Others – Similar to car insurance. Your provider will pay for medical bills to parties that are injured in an accident or collision with you but are riding in a separate vehicle.
- Additional Living Expenses (ALE) – If your living space becomes unavailable due to events outside your control (fire, water damage, etc.), the insurance company will cover any expenses whether in a hotel or other lodging space while yours is fixed.
As with many industries fraud and scams are not rare so it is important to be aware of what you are getting yourself into before signing any documentation.
Once you find a provider that fits your needs, before you sign, make sure to factor in the exclusions – things not covered by your policy. Pay attention to your premiums, add-ons, and any discounts as these can be used to distract you.
To protect from frauds make sure to keep records, receipts, photographs, and inventory of any and all possessions that fall under your coverage as this will help you in case an unfortunate event were to occur. If you file a claim for theft of an item, but there is no evidence that you even owned the item (whether on purpose or not), it could be viewed as fraud.
To read more details and research about renter’s insurance make sure to visit Money’s Best Renter’s Insurance article.
