5 Scary Rental Insurance Mistakes
Rental insurance is essential for protecting your personal belongings and providing liability coverage in a rented space. As a tenant, it’s your responsibility to obtain a suitable plan. When selecting or managing your rental insurance policy, there are a few common errors to be aware of:
Not Having Insurance
Neglecting to obtain rental insurance can leave you in a bad position. Many renters wrongly assume that their landlord’s insurance will cover their personal belongings in an emergency. Unfortunately, your landlord’s policy is not likely to insure your items in the case of theft or natural disasters. If you don’t have rental insurance, an unforeseen event could wipe out your possessions and leave you without compensation. It’s always better to be prepared.
Underestimating Value of Items
When it comes to rental insurance, it’s important to make an accurate and complete assessment of your belongings. Some renters don’t realize the cumulative value of their possessions. In a catastrophe, this can result in out-of-pocket expenses. Take inventory and do some research to determine the realistic cost of replacing your items. Need extra cash? This site pays up to $25 per survey.
Poor Documentation of Items
Although it’s important to value your items, its equally important to document them properly. Failing to document your items could be costly if you need to make a claim in the future. Create a detailed inventory with dates and photographs. That way, you’ll be able to establish proof of ownership in the case of a disaster. Whenever you make an expensive purchase, update your inventory immediately to avoid underinsurance.
Failing to Understand Exclusions
Obtaining rental insurance does not guarantee that you will be covered in every scenario. Depending on your insurance provider, location, and specific policy, there will be certain situations that are not covered. For example, your plan may exclude certain types of natural disasters. Another common exclusion is liability coverage. If your plan doesn’t include liability coverage, you could be financially liable when an injury occurs on your property. Thoroughly study your insurance plan so that you’re aware of what’s covered.
Blindly Choosing the Cheapest Policy
Carefully research your options before you select a policy. A policy with a lower premium might have higher deductibles or more exclusions. Be sure to choose a policy that is appropriate for your individual needs and budget. Consulting with an insurance professional can help you gain a better understanding of potential policies and their corresponding coverage.