What is Renters Insurance, HO4 Policy?
Renters insurance is a packaged policy that covers your Personal Property (Contents), Additional Living Expenses, and Personal Liability. It provides protection against perils/losses such as: Fire, Wind, Smoke, Theft/ Vandalism, and Discharge of Water from Plumbing.
Damages caused by most perils/losses are covered but two major exceptions exist. The most significant are damages caused by Earthquake and Flood. You must buy two separate policies to cover the peril of an Earthquake or Flood.
Why do you need Renters Insurance?
It is really all about protecting yourself financially if something unexpected happens to your possessions. Your Landlord does not have an insurable interest in your Personal Property and their insurance will not cover you.
- If everything you own was destroyed by fire you would need money to replace your personal property.
- If you were displaced from your home by a covered loss- the loss of use coverage would pay additional living expenses (temporarily in a Hotel).
- If a guest in your home is injured, liability and medical coverage can pay expenses.
- If you are a victim of theft or vandalism, it can pay for your stolen or damage personal property.
Here are few things to discuss with your agent that will influence your decisions.
- How much will it cost to replace my belongings if they are damaged or destroyed?
- Does the insurance company have a good reputation for customer service? Are they known for paying claims fairly and promptly?
- What discounts are available? (Ask about multiple policy and other available discounts.)
- What is the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)
Ask your agent to talk about what is covered and be sure to read your policy and understand the policy coverage limits and exclusions so you know exactly what is included and what is not. Because everyone's needs are not the same, it is best to consult your agent to help assess your needs and find the insurance policy that is right for you.