What does renters’ insurance cover?
Many people rent their homes or apartments instead of owning them. According to a report by Bloomberg, almost 100 million Americans rent their homes. Younger adults are especially likely to rent. While most homeowners have homeowners’ insurance to protect their homes and personal belongings, many renters do not have renters’ insurance. This type of insurance is important for people who rent homes or apartments in Atlanta, Georgia and should not be overlooked. You can find affordable renters insurance that offers the type of protection that you need. Anyone who is renting a home or apartment should consider purchasing Atlanta renters insurance for protection against adverse events.
Georgia renters insurance provides coverage for costs related to the theft of or damage to personal property, additional living expenses if you are forced to relocate temporarily, and emergency medical expenses for guests who are injured while visiting your home. It can also provide you with personable liability coverage. However, only certain types of events will qualify for a viable damages claim.
Understanding Georgia renters insurance
Atlanta renters insurance offers protection to tenants from expenses and losses related to unexpected property damage, legal liability, and theft. Cheap renter insurance can be purchased by anyone who rents a condo, apartment, home, or another living space. While renters’ insurance policies are similar to policies for homeowners, there are several differences.
Unlike homeowners’ insurance policies, a renter’s insurance policy will not cover damage to the structure of the tenant’s home. Any damage that happens to the structure is the responsibility of the landlord. The landlord should have his or her policy to cover structural damage.
Renters’ insurance is also much more affordable than homeowners’ insurance. It is possible to find a cheap renter insurance policy that almost anyone can afford.
Further Reading: How Can I Buy Renter Insurance?
What renters’ insurance covers
Typically, a renters’ insurance policy offers four different types of coverage, including the following:
- Damage to personal property in a covered event
- Personal liability protection for injuries or property damage occurring on your premises
- Medical payments coverage for injuries to guests
- Additional living expenses when homes become unlivable because of a covered incident
If your personal property is damaged in a covered incident, the policy should pay for the costs up to the limits of your policy. Covered incidents include events that are named in the renters’ insurance policy and might include thefts, wind, or fire.
Personal liability protection is meant to cover the liability of costs, including your defense costs, if a visitor is injured while on your property or suffers damage to his or her property. Typically, policies include liability coverage of up to $100,000.
Medical payments coverage provides coverage for some of the medical expenses an injured guest incurs after being injured while visiting your property. Finally, coverage for additional living expenses covers your expenses if your rental apartment or home is rendered unliveable by a covered event.
Covered events or perils in typical renters’ insurance policies include the following:
- Lightning and fire
- Hail and wind
- Water damage caused by leaks
- Ice and snow collapses
- Falling objects
Your personal property is protected from unexpected damage from a covered event or a theft. Personal property includes most of the property that you have inside your home as well as outside of it.
Some events are not covered by renters’ insurance. Some common examples include damage to your personal property caused by earthquakes or floods. Damage that is covered by your policy allows you to make a claim with your insurance company. If you experience a total loss in a covered event such as a tornado, you should be reimbursed up to your policy limit for the total value of your property minus the deductible. This makes it important to make sure that you purchase a policy with sufficient policy limits so that you will be covered if you suffer a total loss. To figure out the value of your property, you should create an inventory of everything that you own that includes serial numbers and photographs.
Many renters’ insurance policies also include supplementary coverages. Some of the typical supplementary coverages might include debris removal, damage to building additions that you have added, food spoilage, and losses due to check and credit card thefts.
There will also be some add-ons that you can add called endorsements. Adding endorsements costs more money than the normal premium amount, but they can help to boost your coverage. Endorsements can include coverage for additional events, including floods or earthquakes. They might also be used to secure higher coverage limits. There might also be other endorsements that you can odd for unique risks. If an endorsement is not available for a risk for which you would like coverage, you may have to purchase a separate, standalone policy to cover it.
Events that are not typically covered by standard renters’ insurance
Standard renters’ insurance policies do not provide coverage for sinkholes, earthquakes, floods, damage to your vehicle, your roommate’s belongings, or damage caused by bed bugs and pests. Your liability coverage may not cover all events. For example, if you own a dangerous dog breed that bites a guest, the incident might be excluded by your policy. There might also be limits for certain types of high-value assets. Renters’ insurance rarely covers damage caused by certain natural disasters or pests.
If your vehicle is stolen or damaged, it will not be covered by renters’ insurance. Instead, you will need to rely on auto insurance with comprehensive coverage. Any personal belongings that were inside of your car when it was stolen will be covered by your renters’ insurance policy, however.
Your policy will not cover damage that happens to a roommate’s property. For your roommate to have coverage, he or she will need to purchase a different renters’ insurance policy. If you want to share a policy, you will both need to be named on the same policy and can divide the cost of your renters’ insurance. In general, however, it is not a good idea to add a roommate to your policy unless they are a family member or your spouse. If you do, your coverage will be split if a total loss occurs.
Certain types of high-value items, including electronics and jewelry, may have separate sub-limits placed on them because of the higher risk that they might be stolen in a theft. If you have expensive individual items, you will want to ask about increasing the sub-limits for those individual items.
Your liability coverage should pay for most of the costs associated with legal liability, but some exclusions might apply to injuries caused by your pets. While dog bites might fall under your liability coverage, some policies exclude those events under certain circumstances.
Many insurers exclude injuries caused by aggressive breeds. If you own a breed of dog that has been deemed to be aggressive by your insurer, you may not be covered. If you own exotic animals, injuries caused by them might also be excluded.
How claims are paid
If a covered event occurs and causes damage to your property, you will not receive compensation unless you file a claim with your insurance company. For your renters’ insurance, your claim should only include covered losses, including property damage, personal liability, and additional living expenses that are caused by a covered event.
When you first purchase a renters’ insurance policy, you should take an inventory of all of your assets. You should also keep documents that help to show the value of your property, including receipts, appraisals, or other documents. If a qualifying event occurs, you should document all of the damage that has happened before you file your claim.
To start the claims process, call your insurance company. You will be sent the necessary forms, and your company will request documentation. A claims adjuster will likely be sent out to assess the losses that have occurred, and he or she will decide of what your reimbursement amount should be. While the claims process can be lengthy, you can speed it up by keeping good documentation and records. Your insurance company can use the records that you have kept to speed up the process.
Contact Velox Insurance for affordable renters insurance
Velox Insurance offers great renters’ insurance policies that are affordable for tenants in Atlanta. To learn more about the coverage that might be available to you and to obtain a free quote, contact us today.