Many properties require their tenants to have renter's insurance, and Heers Management properties are no exception. Yet many people don't know what renters insurance is or what its purpose is. For those unfamiliar with renters insurance, here is everything you need to know.
It is a policy that protects your personal valuables from certain losses. Unlike homeowners insurance, renters insurance does not cover the property itself, as someone else owns it. This means renters insurance is significantly cheaper than homeowners insurance.
If you think that you might not need renters insurance because the property already has its insurance, you are wrong. Property insurance will only cover the property buildings themselves and not a tenant's items.
Renters insurance protects you if you do something wrong that causes damages to the apartment, apartment complex or people.
The main reason for renters insurance is to protect your personal property from possible damages and theft. It is also important to have as it protects you from negligence, meaning you did something wrong that damaged the property and possibly other tenants.
In such cases, renters insurance covers the costs of damage repairs, medical bills and even court and lawyer costs if a suit is filed.
Renters insurance covers personal property such as computers, furniture, electronics and bicycles. Depending on the policy, personal property items may be covered whether they are on premises or not. That means the items can be replaced even if stolen or damaged from a storage unit or other places.
Depending on the individual policy, losses of personal property due to inclement weather, such as fire, storms, wind hail, lightning and freezing, may be covered. Under some policies, items that are rented or borrowed may be covered. Always clarify what is covered and under what circumstances.
Renters insurance can also cover liability. If any damage occurs to your apartment, you could be held liable and your renters insurance may cover the cost of damage repairs. If your pet hurts someone or damages their property, your renters insurance can also cover the medical and replacement costs.
Your renters insurance will not cover anything you cannot prove you own. In other words, anything that you do not have a receipt for will not be covered. If you have a roommate, their items will not be covered if their name is not on the policy.
Some policies will not cover high-priced items, such as jewelry, memorabilia, collectibles, electronics or artwork. If such items need to be insured, they will require a separate policy. If they are covered, it may be under certain restrictions.
Renters insurance does not cover intentional damage to personal property. It also does not cover damage to personal property caused by flood or earthquake. Additional flood or earthquake insurance must be purchased.
Renters insurance does not cover business pursuits or professional services. This is primarily relevant to the liability section of coverage. It means the policy will only cover damages you as an individual tenant cause and not those caused by you functioning in a business or as your business.
Renters insurance does not cover the ownership, operation or maintenance of aircraft, motor vehicles and some watercraft. Each of these require their own insurance policy.
The average cost of renters insurance is about $184 per year, which equates to a monthly payment of approximately $15. The cost of renters insurance depends on many things. The main three things that affect the price are type of coverage, amount of coverage and deductible/
Current market value coverage means that you will receive only what your personal property was worth when it was damaged. Replacement cost coverage means you will receive a payment that will cover how much you need to replace the item.
The area in which you live in can also influence the cost of your renters insurance. The more disaster or crime prone an area is, the more likely the renters insurance premiums will be higher.
The size of the building and unit can also play a role in how much you pay for your monthly premium. The larger the building is and the more units in it, the lower the premiums.
Your credit rating is also a factor. A better credit rating means you handle payments and debt well and will likely handle your renters insurance premiums the same way. As such, insurance companies feel comfortable charging you less as they are more confident you will make your payment on time.
It typically only takes a couple of minutes to get renters insurance. The first step is to talk to an insurance agent and specify what you need in a renters insurance policy. He or she will advise if necessary and provide you with a quote
You can choose to accept, deny or simply take your time to formulate a decision. If you opt to shop around before deciding, then it may take days instead of minutes to get your insurance coverage.
It is recommended that tenants begin shopping for renters insurance before moving so they have coverage from the first day they move in.
If you already have other types of insurance, such as auto or life insurance, consider talking to your agent about bundling. Often, insurance agencies will provide customers with discounts if they choose to obtain more than one insurance with them.
Depending on what insurance you opt for you will need to know how much your items are worth. Guessing will not help because in the end you could end up with a lot less money then you should, or the insurance agency may consider your numbers fraudulent and opt to not accept your claim.
Use technology to create a digital inventory list that is accessible and easy to update. Some iterations can even update the current value of your items, making it that much easier. If possible, consider printing out the inventory list every three months to a year in case you need a hard copy.
Everyone likes saving, and sharing a renters insurance can actually save you a bit of money but not much. Also, be aware only two unrelated people can share a renters insurance policy. If there is a third roommate, the person must obtain a separate policy.
While there is no extra charge for adding a roommate to the policy, there is also no extra coverage. If your policy covers $100,000 worth of damages, it will continue to cover the same $100,000 except now that same amount covers two people's personal property and liability.
If roommates do share a renters insurance policy, it is recommended that each maintain a separate inventory list.
Some states and/or policies do not allow for a shared renters insurance policy by two unrelated people. Some insurance agencies require that both roommates be on the lease while others just need one to be.
There are multiple possible complications from sharing a renters insurance policy. If your roommate ever makes it claim, it will be added to and remain in your insurance history. If you choose to renew, your renewal rate will increase whether or not your roommate is still on the policy. If you choose to change insurance policy or agency, you are then considered a "risky" client.
The same occurs if someone sues your roommate. For example, if your roommate's cat bites someone and your roommate is held liable, it will show up on both you and your roommate's insurance history.Whether you or your roommate file a claim individually, both of you are required to sign the claim check. That means hunting down the other person if by the time the claim check comes you are no longer living together.
This can be especially difficult if you are not in good terms. In some cases, one person has refused to sign a claim check simply so the other would not receive money.
If your roommates steals from you and both of you are on the policy, you are not covered.
Written consent is required to remove someone from a renters insurance policy, meaning the person being removed must provide a written statement that clearly states he or she no longer wishes to remain on the policy.
You can share a renters insurance policy with your significant other but it is not recommended. While you may see yourself with your unmarried significant other for a lifetime that is not always the case and having a shared renters policy can be awkward if the relationship comes to end.
Just like in the roommate scenario, your significant other can leave a mark on your insurance history, must co-sign all claims checks,and written consent is required for the person to be removed from the renters insurance policy.
Many insurance companies will offer some sort of discount but won't do so unless you ask. Consider asking about discounts or reduced rates for any of the following:
If these are not options, ask if there is any additional way to save. Agents are willing to help you, if able to, in order to keep you as a customer.
Never assume what is and what is not covered, as each individual policy is different. While some policies cover property while it is not on the apartment premises, others do not.
If you have any questions regarding renters insurance or Heers Management apartments in Phoenix, contact us today! There are many Phoenix apartments for rent waiting for you.