Renters insurance offers a broad array of protections for tenants who lease their living quarters, but no insurance policy is fully comprehensive in its protections. If you're a tenant, here are some of the risks that renters insurance does cover and some that it doesn't — along with how to protect against those that it doesn't.
Covered: Common Natural Perils
Renters insurance includes a variety of common natural disasters and similar perils within its protections. For example, policies protect tenants in the event of a lightning strike, fire, and smoke (from lightning or another source of ignition), hail, wind and winter precipitation (i.e., snow, ice or sleet).
Should any of these risks significantly damage your insured belongings, renters insurance will pay to replace what you lost.
Covered: People-Posed Perils
Renters insurance also covers common risks that are posed by people. These covered risks include theft and vandalism, along with damage caused by a vehicle that runs into your home.
Should someone steal your belongings, damage your belongings, or drive a car into your home, renters insurance will pay to replace whatever is damaged or lost in the incident.
Covered: Less Common Perils
In addition to these somewhat common risks, renters insurance also covers incidents that typically don't occur as frequently. For example, renters policies protect against damage caused in riots, by explosions, by airplanes, during volcanic eruptions, and by falling objects. Some policies also include protection for power surges.
While these aren't likely to happen, insurance helps you prepare for the unexpected. It's good to have the risks included in coverage even if they seem improbable.
Not Covered: Earthquakes
Earthquakes are one of the few risks that renters insurance policies don't include in their standard coverage. This peril isn't part of a standard set of protections because the risk of an earthquake varies so much from one place to the next. Tenants in some areas need earthquake coverage, while the protection is rarely ever purchased in other areas.
If you do need earthquake coverage because you live in a tremor-prone region, a separate earthquake policy can be purchased alongside your renters insurance policy.
Not Covered: Floods
Floods likewise aren't covered by standard renters insurance policies because the risk of flooding varies so much from place to place. In some cases, even different properties within the same city can have vastly different flood risk exposures.
If you need flood coverage, flood insurance also can be purchased alongside a renters insurance policy.
For more information, contact a company like Woodmansee Insurance Inc.
Purchasing insurance — the right insurance — is one of the smartest things you will ever do. While there are definitely differences between homeowners, car, life, and health insurance policies, they all serve the same purpose when it comes down to it. Insurance protects you against financial ruin should a tragedy happen in your life. In the case of homeowners insurance, that tragedy could be a fire or a flood. In the case of life insurance, that tragedy would be your death. The more you learn about insurance, the better the decisions you'll make when purchasing it. So dive into the articles here, and start reading.