Buying insurance is important to cover risks and damages caused by theft, disaster, and fire accident. Different types of insurance provide different coverage benefits, so understanding insurance can be difficult. People have various misconceptions about renters insurance, so they delay insuring their home with it.
Misconceptions Regarding Renters Insurance Clarified
People are unclear about what is covered in the renters insurance. Let’s look at the things that you were probably getting wrong about your renters insurance.
Renters insurance covers only your belongings. It won’t cover any broken window or property damage, as it belongs to your homeowner, so it will be covered by their policy. However, renters insurance can cover expensive things from natural calamities, fire accidents, and thefts. The renters insurance does not insure all the things in your house. It has coverage limits, which include:
- Overall limit
- Individual limit
The overall limit is your policy’s pay-out, whereas individual limits are set to expensive things, including jewelry, artwork, decor, and electronics.
Renters insurance will not cover your roommate’s property as long as your roommate is your parent, child, married partner, or sibling. Otherwise, add your roommate as one of the beneficiaries to your renters insurance, which can cost you extra.
You will only be reimbursed for the unfortunate incident that happens after you have bought renters insurance. You cannot claim for a reimbursement if you lose something before buying renters insurance.
Your renters insurance claim amount would be subjected to a deductible. In case of theft or damage, you might claim the amount from your renters insurance. However, a deductible would be applicable, which will reduce the claim amount.
Renters insurance can also cover your rental costs in the event of a disaster. Make sure you get one for you to protect your expensive belongings. Do you have any additional questions about insurance? Contact the experts at Phocus Insurance today. We look forward to helping you with all your coverage needs.
