You may have an obvious question like why you should buy a renters insurance policy or you may think that your landlord (or owner) is responsible for obtaining insurance coverage for your own interests.
You can neglect or procrastinate to obtain a suitable type of insurance policy for the financial loss of your valuable household possessions that you may suffer at any time. But in any case, you must admit that your landlord and / or landlord will never insure the contents / items of your home (rightly so, it would go against the principles of insurance and insurable interest) and no one will receive a claim. at the end.
Instead, your landlord is more interested in protecting your home buildings (including rented ones) and the legally owned contents of your home. You may be thinking that renters insurance coverage is expensive to have. Before purchasing a renter’s policy, you must confirm the following:
1. What kind of covers are you receiving?
2. Is there a discount available?
3. What are the exclusions in the policy?
In the US, a standard renters policy (HO-4), which covers all 16 disasters, opts for two types of loss payment methods.
1. Actual cash value that pays you the depreciated cost of the content, up to a certain limit as established in the policy and
2. Replacement cost that pays you the actual cost of replacing your damaged content, up to a certain limit and without any deduction for depreciation.
So you have the options, depending on your budget, which one to consider. And if your valuables, such as jewelry, music system, gadgets, furs, etc. are the most valuable that exceed the standard policy limits, then you may need to obtain an additional endorsement from Floater to sufficiently cover the valuable contents.
Like standard homeowners insurance, the standard renters policy covers fire, lightning, vandalism / malicious damage, theft, explosion, windstorm, water damage (generally excludes floods that can be obtained from the Federal Insurance Program Floodsmart and the point of contact is: 888-379-9531 and http://floodsmart.gov).
Renters insurance also does not cover damage caused by water pipe leaks, groundwater seepage, mold growth (as a result of poor building maintenance or normal wear and tear). But damage caused by snow or ice, sudden and accidental flow of water from a natural source, rainwater, storm, freezing of plumbing pipes are normally covered.
In India, there is a bundle policy, popularly known as Homeowner’s Insurance (Compound) that consists of many sections covering content (Sect-IB) that automatically covers floods and floods, earthquakes, etc. Contents insurance in the UK, New Zealand and Australia covers storms, floods, earthquakes and tsunamis (Australia).