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Apartment Renters Insurance Basics

Guest post by: Alston Balkcom

Article Overview: Most apartment complexes, as well as a lot of smaller landlords, require their tenants to carry this insurance as a condition of the lease. Even if a renter is not required to purchase it, it still makes a lot of sense.Renters insurance policies are most often written on a standard HO-4 policy form. The HO-4 policy form consists of four coverages "packaged" for a low price. Included in the plan is coverage for personal property, loss of use, liability and medical payments

Apartment Renters Insurance Basics

Renters insurance, may be the best insurance bargain offered to consumers. The consumer gets a lot of insurance coverage for a low cost. Most apartment complexes, as well as a lot of smaller landlords, require their tenants to carry this insurance as a condition of the lease. Even if a renter is not required to purchase it, it still makes a lot of sense.

Renters insurance policies are most often written on a standard HO-4 policy form. The HO-4 policy form consists of four coverages "packaged" for a low price. Included in the plan is coverage for personal property, loss of use, liability and medical payments

Losses involving personal property occur frequently. Personal property coverage is part of the HO-4. This covers the belongings of the insured anywhere in the world for things like fire, theft, and vandalism. Worldwide coverage means it covers shoes stolen from your bags in another country. It can also cover you if your dry cleaning is stolen from the back seat of your vehicle. Property coverage is on a named perils basis - that means that if the peril is not listed, it's not covered. Examples of uncovered loss, would include leaving a laptop behind after exiting a bus, or damage to a television by a thrown baseball. The contract also includes built in limitations of coverage for things like cash, jewelry, documents, and firearms. For an extra cost, some of these coverages can be extended onto the policy via endorsement.

Loss of use protection, can pay for you to live in a hotel should your apartment become uninhabitable due to a covered peril. Fire is most often the reason why someone would file a claim for loss of use.

Personal Liability is also a part of the standard renters policy. It pays for lawsuit defense and judgment payment for the insured if they are sued for a covered cause of loss. This typically includes dog bites, slip and fall claims from visitors, or even a tripping accident involving a child.

Medical Payments coverage pays for a limited amount of medical bills only coverage, for a non-resident of the household who is injured on premises. This is "no fault" coverage . It doesn't matter who caused the injury. It won't matter how it happened, or who was at fault for it. For example should someone breaks a leg after tripping on a kid's toy, and doesn't live in the household, Medical Payments coverage can apply. Keep in mind, only the insured can file the claim.

In 2011, a renters insurance contract will cost around $150 or $200 a year, for $20,000 of coverage on contents, $4,000 of additional living expense, $100,000 of personal liability, and $1,000 of medical payments coverage. Better yet, if a tenant homeowners and auto contract are written with the same insurer, they will usually offer discounts on BOTH plans, from 10% to up to 40% depending on any individual company, with an average being around 25%.

Because the cost of apartment insurance is so low, even the tightest of budgets can usually find a way to manage the cost. In fact a multi-policy discount can make the rate extremely low.

If the household insures their cars with the same insurer, your bills may be lowered by MORE than insurance for renters insurance costs. This can mean that you get the renters insurance policy without paying a greater amount than you pay for the automobile insurance contract. That combined DECREASE in insurance cost, with an INCREASE in coverage, is what makes insurance for renters one of the best deals in the insurance industry

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Article Tags: apartment renters, insurance basics, insurance policies, medical payments, renters insurance
Referred by: http://www.searchengineworkshops.com



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