|| Damage and Loss Covered by Renter's
Lets imagine for a minute. You live in Florida, near the coast. Its a
dream, the sun shines brightly, the beach is within biking distance, it
is fun in the sun time in your life. Hurricane season comes and your area
gets hit by a tropical storm, nothing fatal, but frightening and damaging.
The roof on the bungalow you rent starts leaking. You call your landlord
who calls a roofer. After the roof is fixed, you ask a couple of friends
to help you with the water damaged furniture in the house, the couch has
to be replaced, as well as the coffee table and area rug. While helping
you your friend slips and falls, breaking his wrist. You call your
landlord again and ask if he has already talked to his insurance company
about replacing your furniture. He says no. You ask about having your
friends medical bills covered. Again, the landlord says no. Now you have
to replace $2,000 of furniture out of your pocket, and your friend has
tens of thousands of dollars of medical bills to pay for out of pocket.
The landlords hazard insurance policy for the rental home only covers the
building and outbuildings, and does not extend coverage to the tenants
belongings or liability if someone is injured on the property. Many
renters do not realize their possessions are at the mercy of any number of
losses with no coverage whatsoever from the landlords insurance. Renters
insurance protects the tenant from loss of personal belongings and from
liability that could be incurred from property damage or bodily injury to
others. A renters policy is called an HO-4 Contents Broad Form (Apartment
Property coverage covers personal property, wherever it is located, that
is owned or used by the insured and insureds relatives who live in the
household. Personal property is insured against natural or man-made damage
or loss. Man-made perils include fire, theft, falling objects, explosion,
riot or civil commotion, aircraft, vehicles, vandalism or malicious
mischief, theft, accidental discharge or overflow of water or steam from
within a plumbing or sprinkler system, and sudden and accidental damage
from artificially generated electrical current lightning. Natural perils
include windstorm, hail, smoke, weight of ice or snow, and volcanic
eruption. Some states have mandatory or additional amendments that cover
natural disasters in those states, such as earthquakes in California, and
hurricanes or sinkholes in Florida. Also, it is important to note that
renters insurance policies do not cover damages caused by flooding, back
up of sewers or drains, war, nuclear hazard or intentional loss created by
Some of the included perils are subject to limitations. Theft, for
example, covers loss from attempted theft and loss of property from a
place where the property is likely to have been stolen but does not cover
a mysterious disappearance, theft committed by the insured or at
construction sites. Watercraft, related equipment, trailers and campers
are not covered away from the residence. Certain personal property, such
as jewelry, cash, coins, collectibles (such as stamp collections), and
silverware, is only insured to a limit. Many people opt to list these
items individually as "scheduled items" with a specific value for each.
Another coverage for renters is "loss of use", which covers increases over
normal living costs if damage or loss renders a residence unfit for
occupancy. Loss of use will cover an increase in costs for food and
shelter, for example, if the residence is damaged from an included peril.
Loss of use usually only covers these increases for a certain period of
time while the residence is being repaired.
The liability coverage protects the policy holder from legal liability for
bodily injury or property damage to others, and pays for medical or other
related expenses for others who are injured through personal activities.
Liability coverage does not include liability as a result of business
activities, motorized vehicles and watercraft.
Renters insurance covers damages and loss from a number of perils and
helps renters stay on their feet in the event their home becomes
uninhabitable. A comprehensive insurance policy tailored to the renters
needs will offer the best coverage at the most affordable price.