Have you had the misfortune of being robbed?
This could be something you experienced in your own home, at work, or even when you’re traveling. So other than being ultra-cautious while on the move or installing some high-tech alarm system in your house, what else can you do to make the loss feel a little more manageable?
One option is to purchase renters insurance, as it can help to reimburse the cost of thefts both inside and outside of your home. But what exactly does renters insurance cover? Before we get into detail let us see what renters insurance is.
What is Renters Insurance
It’s a general misconception that when you rent an apartment you don’t need insurance. A renter does not have the same level of protection as someone who owns their home.
In case of theft or other damages, a tenant may be held liable. So it is advisable to purchase affordable renters insurance to safeguard yourself.
Renters insurance is insurance that covers individuals who rent apartments, condos, or homes. The renter’s policy generally includes 3 types of coverage:
- Personal
- Liability
- Additional living expenses
Personal Property
This type of coverage helps to reimburse the renter for losses due to theft or damage of personal belongings. The amount of reimbursement is typically based on the replacement cost of the belongings, up to the policy limit.
Liability
If someone is injured while in your home, or their property is damaged, your liability coverage may help to pay for their damages. This type of coverage also helps to pay for legal expenses if you are sued as a result of an accident.
Additional Living Expenses
In the event that your home is uninhabitable due to a covered loss, your renter insurance may help to pay for alternate living expenses such as paying for hotel or restaurant meals.
So in case you are robbed; the expenses incurred by the thief which include buying new clothes, getting cash from an ATM machine, and also throwing away all the stuff that is old get covered by Renters insurance. If you are not sure about your coverage contact your insurance provider for better understanding.
Let us now understand when exactly a renter’s insurance covers theft?
Your renters insurance will generally cover your belongings both inside and outside of your home as long as you have purchased the appropriate coverage for them.
So what exactly is appropriate coverage?
Your renters policy will likely include a coverage amount for personal property theft. This means that if you have belongings that are stolen while they are inside your home, the policy will reimburse you up to a certain limit. The policy may also include a coverage amount for theft that occurs when your belongings are outside of your home.
However, it’s important to remember that your renters insurance will not cover all of your losses. For example, if you have a $1,000 deductible and your belongings are stolen, you will only be reimbursed $999.
For clear understanding we have compiled a few general FAQs related to theft and renters insurance.
Does it cover theft when you are away from your home?
Yes, most policies will cover theft when you are away from your home. This would include theft of personal belongings while you are on vacation, or even if your house is broken into while you are at work.
Does it cover car theft?
No, car theft or damage to the car due to a break-in is generally not covered by renters insurance. You would need to purchase a separate policy specifically for car theft. However if your personal belongings such as laptop, camera, etc., are stolen out of the car then it would be covered.
Does it cover damage to the property you live in?
Damage to the property like a broken window or furniture will not be covered under renters insurance. Typically your landlord homeowners insurance would cover damage to the property you live in. However if there was a fire in your home, and personal belongings were damaged or destroyed; you would be reimbursed up to the policy limit.
Does it cover loss of cash?
Theft of cash is not typically covered under renters insurance. If you keep a significant amount of cash in your home, you may want to consider purchasing a separate policy that specifically covers theft of cash. However, some policies may cover stolen cash up to a certain limit that you can specify.
Does it cover loss of jewelry?
Theft or damage of jewelry is generally not covered under renters insurance. You may be able to purchase a separate policy specifically for jewelry, but the coverage amount is typically very low.
Does it cover motorbike theft?
If your bike is stolen from your garage or parking lot, it would be covered under your renters insurance policy up to the limit specified minus your deductibles. However adding a bike insurance to your renter policy would be the best option to cover any extra cost.
Does it cover loss of important documents?
Renters insurance does not typically cover the loss or damage of any important documents such as passports, social security cards, and birth certificates. Contact your insurance agent for options if you need separate coverage.
Does it cover theft of business property?
If you own a small business and have items stolen from your office or store, this type of coverage may apply if you have purchased additional insurance for your business. The limit on this type of policy is typically much lower than personal items, and it will only cover the cost to replace the stolen property – not its actual cash value.
What is the limit on reimbursement in case of theft?
The limit on reimbursement is the maximum amount the insurance company will reimburse you in case of theft. The limit may vary based on the cost to purchase the items taken. For example, if your stolen belongings are worth $10,000 and you have a $5,000 limit; then you will be reimbursed $5,000 for that particular loss. If your belongings are worth $50,000 and you have a $5,000 limit; then your entire loss will not be covered.
So before you purchase a policy, be sure to read the fine print, understand the limit of your coverage and compare renters insurance quotes from a few reputable insurers to get the best value for your money.
Final Takeaway
Is Renters Insurance Worth It?
If you are living in a rented house or flat, then there is one thing that will be constantly on your mind – insurance. Renter’s insurance may cost you relatively less than the amount of money you spend on your monthly rent. It’s always better to be safe than sorry; this is why even if it seems like an unnecessary extra expenditure, you need to opt for it.
If you have any additional questions, or are unsure if your policy covers a certain type of theft, please contact your trusted Texas renters insurance company. They will be able to help you understand the specific details of your policy and answer any questions you may have.
