When you buy a home, insurance is one of those non-negotiables that homeowners are faced with – a homeowners policy is a must-have have to protect what often is a person’s biggest investment.
But what if you rent or lease your home? N.C. Insurance Commissioner Mike Causey encourages renters to spend a little money to get coverage that protects your personal property against damage or loss and insures you in case someone is injured while on the rented property.
A landlord’s insurance is on the property itself, but it doesn’t cover the contents of the property – that’s a renter’s responsibility. And although renters’ insurance is not mandatory, there are landlords who do require a renter to have insurance on their personal property and belongings.
Using a recent apartment fire in Morrisville as a backdrop, Causey encouraged tenants to make sure they understand what’s covered in their renters’ insurance policy. “I think there is a misconception because some people may mistakenly believe the landlord may have some type of insurance, but the only insurance the landlord has is on the actual building,” Commissioner Causey said. “So, unless people have renters’ insurance, the loss is on them. It’s very inexpensive and it has so many benefits that people don’t think about above and beyond property loss.”
Renters’ insurance policies generally cover your belongings, medical expenses and even temporary housing if you are displaced. Renters’ policies could be as low as $25 a month
There are plenty of types of coverage to consider, including protection for personal belongings of people who live in the apartment, condo or home.
Coverage C is subject to a designated amount, agreed upon by you and the insurance company, which puts a limit on certain types of property that are susceptible to loss – including money, securities, and luxury items like jewelry and furs, for example. Talk to your insurance agent to insure these items and more, including manuscripts, stamps and coins, according to advice on the N.C. Department of Insurance website.
Insurance can protect renters against what the insurance industry calls “perils,” which include a range of weather-related issues like lightning, wind, hail and damage caused by the weight of ice, snow or sleet.
Other perils that the DOI website mentions include vandalism and malicious mischief, explosions, riots or civil commotion, smoke, aircraft, vehicles, theft and even volcanic eruption.
That last one most likely won’t come into play here in North Carolina, but if you live in an apartment and a neighbor’s pipes burst on the floor above you, having renter’s insurance could come in handy.
Coverage D is available to help with additional living expenses if your home is damaged to the extent that you can’t live there.
While it’s being repaired, you could get housing and meals covered, as well as warehouse storage.
Coverage D is normally limited, so it’s important to speak with your insurance agent to learn about the details.
Visit the N.C. Dept. of Insurance website at https://www.ncdoi.gov/ to learn more about renters’ insurance.
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