It's time to consider renters insurance!
Some homeowners and management companies require their tenants to purchase tenant insurance as part of their rental terms, while others have no preference of one kind or another. Either way, it is always wise to know what the options are when it comes to tenant insurance.

What is tenant insurance?
Tenant insurance is a monthly policy that covers the tenant and his valuables while he rents an apartment. Think of it almost like homeowner sexual insurance, with protection that reduces its debts in the event of certain unforeseen events like break-ins, guest injuries and natural disasters. However, unlike homeowners insurance, tenant insurance does not provide any structural coverage - the burden is still on the homeowner to properly insure the unit itself.

Simply put, tenant insurance covers the things in the tenant's apartment, not the apartment itself. So if a pipe explodes in a building and his stuff is destroyed, or if his guest walks away with some of his valuables, he will be compensated for the refund.

However, as with any insurance, there are limits to coverage. His personal policy will detail the details, but expect there to be an overall limit that will limit the total amount that can be refunded through tenants insurance, as well as an item limit that limits the amount that can be refunded for each specific item.

What does rent insurance cover
Tenant insurance covers the belongings that the tenant holds in his apartment as well as his personal obligations if someone is injured in his unit and is found responsible for that injury. It will also usually cover the short-term housing and relocation expenses if he cannot stay in the rented house for certain reasons, such as a unit fire.

Instead of dividing what rent insurance covers into specific items, it is better to look at the types of situations to which these policies apply. Similar to home insurance, not all causes of damage are considered equally.

In general, a good tenant insurance policy will cover damage to belongings due to:

theft
vandalism
fire
Objects fall
freezing
Water and steam damage (excluding floods)
smoke
tornado
Wind and hailstorms

This is not an exhaustive list, be sure to read the specific policy carefully so you know exactly what you can expect.

What renters insurance does not cover
It is no less important to know what rent insurance covers, it is to know what it does not cover. And here too it is quite similar to home insurance, since from the list above there are two main types of situations left: Floods and earthquakes.

If the apartment is in a place that needs to be taken care of regarding one of these two types of natural disasters, then it is advisable to consider purchasing separate policies for coverage. Flood insurance for renters is available through many private insurances as well as the National Flood Insurance Program
And earthquake insurance can often be added as a supplement to tenant insurance through the same company through which you purchase the original tenant policy.

How much does rent insurance cost
You will be happy to know that tenant insurance is actually quite lucrative, with an average policy cost of just over $ 15 per month and reputable policies usually available at half that. The annual cost of renting insurance ranges from $ 114 to $ 262, according to the National Association of Insurance Commissioners (NAIC).

There are several different variables that can affect how many payers rent insurance. These include the location of the apartment (both the state and the specific neighborhood) and the size and type of building. As with most things, you should do your research while searching for tenant insurance plan and get some quotes so you can be sure you will get the best deal possible.

Tenants insurance and storage
Some tenants' policies do cover items that are stored under so-called "off-site coverage." However, the refund limits are often lower than they are for items at the place where you actually live, and there may be a time limit on how long items are covered in storage - for example, only within one month of the move.

Renters 'and pets' insurance
Especially absent from the list of things that renters insurance covers are pet-related damages. So if the cat scratches the door jambs in the apartment and the landlord wants to fix it, the tenant will have to cover the costs.

Warning for this is personal liability, as some of the tenants' policies cover pet-related damages when they are in the yard. As for whether the policy will cover pet-related injuries like dog bites, chances are not, since these types of liabilities are not usually covered under tenant or homeowners insurance.

Cash value versus replacement cost value
There are two different ways in which tenant insurance can reimburse acceptable expenses: cash value payments and replacement cost value payments.

Payments in cash return according to the true cost value of the item in question. However, keep in mind that impairment is taken into account when determining value - a five-year-old TV, even if it was expensive at the time of purchase, would not be valued as much as a new TV.

Replacement cost value payments are returned in the form of new items that are “like type and quality” to the item in question. So instead of giving cash for the five-year-old TV mentioned above, you will either get the repairs of your TV or you will get a new TV that is similar in its features.

How To Get Tenant Insurance
The first step in getting tenant insurance is to understand exactly what type of coverage and how much coverage is needed. The inventory value of the objects in the apartment. The more things there are and the higher their value, the more coverage you will want.

From there, do some research to find the insurance company you like. You can go through many standard insurance providers or you can opt for specialized tenant startups.

Again, your best bet is to get some quotes. Consider the premium when making your decision, but also look at the coverage and deductible amounts. You may want to pay a slightly higher premium if it means lower deductibles and more comprehensive coverage.