This lack of understanding means many people don’t value it as highly as they might with information.
Most tenants are aware that renters insurance coverage exists, and while most done realize how affordable it actually is, even more don’t realize how much coverage they receive within the bounds of one standard policy.
Many people believe these policies are meant exclusively to cover stolen or damaged possessions.
The reason renters insurance coverage is often interpreted this way is that it is also often known as contents insurance. This implies that the personal possessions of a tenant are covered in case of burglary, fire or other types of peril. However, there is a lot more to this type of policy than many people realize. Not only does this mean that many people aren’t buying these policies because they don’t understand their true values, but it also means that many policyholders who are covered don’t use the coverage to which they are entitled.
It’s important for all tenants to understand renters insurance coverage to make the best decisions.
Consider the following types of covered factors that are often misunderstood by tenants regardless of whether or not they are policyholders:
- Possessions outside the building or off-premises – Most tenants know that their policies will cover their possessions within the walls of the residence they rent. However, many policies will also cover those items when they are outside on the property as well as if they are off premises, including while traveling. Some of the most common claims that are covered by these policies include vehicle break-ins in which items are stolen from the vehicle.
- Living expenses when the home becomes uninhabitable – If a disaster occurs, such as a fire, which means that you cannot stay within your rented home, the policy will typically pay for you to stay somewhere else with your normal standard of living up to a certain limit or length of time.
To avoid unnecessary financial mistakes, experts recommend understanding renters insurance coverage whether or not you are already a policyholder. This way, you can best understand which policy best suits your requirements for the perils and situations for which you wish to be covered and at a rate you can afford.