A lot of people are renting homes. If you are renting, for any reason, you will want to know about insurance on rented property and what it covers. Basically, insurance on rented property is a form of financial protection that operates more or less the same way as medical or vehicle insurance. Here is what you might want to know about insurance on rented property.
Personal Property Damage
If you are renting out your property and it gets damaged, rental insurance will take care of the cost of the damage up to your policy’s limits. There are several forms of damage that will be listed in the policy’s terms and conditions. For instance, the policy can come with conditions like when your property is damaged by fire, wind, or theft. Before you take out rental insurance, it is important to read the fine print so you won’t get any surprises.
Personal Liability
Rental insurance also covers personal liability. For instance, if a person is injured on your property and you are at fault, rental insurance can cover the liability costs. This can include legal and medical costs. Most rental policies can cover up to $100,000 in liability coverage. Contrary to popular belief, situations like this happen frequently. There are about 42 million homes occupied by renters, according to a study done in the fourth quarter of 2020. With this many people renting, lawsuits, injuries, and legal issues are common occurrences.
Additional Living Expenses
If one of your rental homes becomes uninhabitable due to something that’s covered in the policy, the renters’ insurance will pay for expenses that are separate from your normal living expenses. In insurance terms, this is known as loss of use coverage. It is money that will help you sustain yourself until your situation is figured out. However, you must also read your insurance policy before assuming it covers everything.
Rental insurance can also cover medical costs in certain instances. However, you may see that there is limited coverage in the case that one of your guests is injured on your property. Apart from that, insurance on rented property is worth considering, and it has many benefits. To get the most out of rental insurance, you have to make sure you understand it fully. This will eliminate any doubts and risk for surprises.