In Part 1 we looked at several issues that relate to Renters Insurance, and now we’ll continue that discussion with a few more issues to consider.
Renters Insurance Typical Coverage
Under the umbrella category of Homeowners Insurance, the most popular type of Renters Insurance policy is an HO-4. “HO” refers to all types of Homeowners or Renters Insurance policies, and HO-4 is specifically designed for renters. It covers damage or loss of a rental unit’s contents, as a result of a variety of causes, including the following:
• Theft, riot, or vandalism
• Falling objects or weight of ice or snow
• Windstorms or hail
• Electrical surges, fire, smoke or explosions
• Motor vehicles or aircraft
• Water or steam from sources such as air-conditioning, fire-protective sprinklers, heating, household appliances, or plumbing
It also covers less common situations such as lightening or volcanic eruption. But it’s important to realize that there are potential causes of damage that are not covered by HO-4 policies.
Renters Insurance Limitations
For instance, damage caused by earthquakes and floods are typically not covered. (Wind damage from hurricanes or tornadoes may not be included, either.) Depending on where you live, the threat of those situations may be anywhere from minimal to significant. If the risk is significant, you may want to consider purchasing an additional policy that would cover your possessions in the case of either of those events; based on the value of your possessions as well as your risk factors — including both your location and the type of structure your rental unit is — the policy will be determined.
Also note that Renters Insurance doesn’t cover losses caused by your own personal negligence, such as a fire caused by a lit cigarette. Damage caused from sewer backups are typically not included under such policies, either.
Renters Insurance Riders
In addition to add-on insurance policies offering coverage for certain natural disasters not otherwise covered by a Renters Insurance policy, you’ll want to consider Riders, which add coverage for specific categories of items not otherwise covered under a standard Renters Insurance policy.
Riders can be particularly useful if you own valuable jewelry, unique collectibles, or antiques which would be expensive — or impossible — to replace. Before purchasing an Insurance Rider, you may need to pay for an appraisal in order to determine value.
Renters Insurance Personal Liability Coverage
If someone files a lawsuit against you because of injuries caused while in your apartment or rental home — or for injuries caused by you or someone else covered by your Renters Insurance policy — your policy will provide the necessary coverage for any medical bills, legal costs, or other damages incurred. Limits of personal liability coverage included in a Renters Insurance policy can vary greatly. Any medical payments for someone injured while on the property you rent will generally be limited to those outside your household or family.
In Part 3 we’ll take a look at how Renters Insurance applies to the tenants’ possessions which are not located in the apartment or rental home when they become lost or damaged.
The Nicholas Insurance Agency, led by Greg Nicholas, is a family owned business serving the York county, Pennsylvania region. In the insurance business since 1981, Greg Nicholas helps families, businesses and individuals understand the value of different insurance products and make wise decisions when selecting the best insurance products for their specific situations.
Offering exclusively Allstate insurance products, the Nicholas Agency provides auto, homeowners, rental and landlord insurance as well as life & disability, recreational vehicle, motorcycle and personal liability insurance.
For more information, visit our two York, PA locations at Westgate Plaza or York Marketplace or call us at (717) 764-2024.
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