Are you shopping for Renter’s Insurance in California. Maybe you are looking to bundle your automobile insurance to save huge. Or maybe your like many people, you just need to find car insurance around you that also provides low cost property coverage, regardless if you live in Los Angeles CA, or Riverside CA?
If so, understanding the basic insurance coverage of your policy is vital to your protection since, knowledge of your policy reduces any future coverage gaps.
Tenant Coverage is a type of insurance that protects the renter, as well as their property. Just like other forms of property insurance, customers can choose the limits of coverage and deductible and be billed monthly for their premium.
The amount of coverage that a renter chooses should account for the value of their belongings and offer enough coverage in the event of an emergency.
What Does Renter’s Insurance Cover
Much like a homeowner’s policy, a tenant policies typically cover fire, theft, vandalism, utility malfunctions (plumbing and electricity), weather related damage and a host of other hazards.
Two things you should be aware of in regards to what policies will and won’t cover: Earthquake and Flood Insurance is not included on a Renters’ coverage policy.
Other Type of Coverage
If you live in an area prone to Earthquakes and/or flooding, then think about purchasing specialized insurance policies to ensure adequate protection of these risks.
Any hazard that isn’t specifically listed, isn’t covered! If your renter’s insurance policy doesn’t list water damage from faulty plumbing, then unfortunately, you would not be covered if this loss should occur.
This is why it is crucial that you understand the underwriting regulations and policy coverage prior to signing or buying renters insurance online.
Renter’s insurance policies like homeowner’s policies, are characterized by a lot of assuming as to what’s covered.
Never assume something is covered when it comes to tenants policy, since at the time of a loss is the worst possible case scenario to learn of this discovery.
6 Reasons You Need Coverage:
- Renter’s protection will cover the cost of belongings lost in a fire, due to lightning, a windstorm, or hailstorm.
- Renter’s coverage can protect you from theft.
- If your home is damaged and uninhabitable, renter’s insurance can cover the cost of other living arrangements.
- This Coverage covers the costs of accidents that occur on a renter’s property.
- If a person loses important items while traveling, this coverage can cover that too.
- Personal Liability Coverage in the event you are sued by someone who was injured on your property.
What is Personal Liability Coverage?
Your renters policy program provides not only personal property coverage but also personal liability coverage which is automatically included on your renters coverage policy.
By combining property and liability coverage, your renters company is able to reduce processing costs, determine losses more accurately and pass these savings onto you in the form of cheaper premiums.
The liability portion of the policy is designed to protect your assets as a tenant if you are being sued by someone who was injured, physically, while on your property.
Most tenant policies offer liability protection for bodily injury and property damage.
The liability portion covers not only the cost of the claim, but also the cost of defense if you are being sued, which is limited to the amount of coverage for bail bonds and other bonds related to the claim.
The standard renters insurance policy liability protection will cover injuries or damages caused by the insured, a member of the insured’s family or a family pet.
It applies to injuries that have occurred on the insured’s property or anywhere in the world from a civil not criminal law.
If the insured or a family member are indicated in a criminal lawsuit, the policy will not cover any financial loss as a result of this act.
What is Covered on Policy?
What is covered is just as important as who is covered under your tenant policy.
So let’s begin with the first “what” is found on your coverage sheet of your renters declarations page, which is bodily injury.
Bodily injury means harm, sickness or disease, and includes the cost of required care, loss of services or death resulting from the injury. This is one of the main kinds of loss that constitutes a civil liability.
The second coverage feature found on your tenant policy is, Property damage.
Property damage means injury to or destruction of tangible property and includes loss of use of the property. Loss of use is another of the key kinds of loss that constitutes a civil liability.
The last coverage feature found under your tenant policy is Occurrence.
Occurrence means in the language of insurance coverage, as an accident, including continuous or repeated exposure to conditions, that result in bodily injury or property damage, neither expected nor intended by the insured party listed on the policy.
A situation must be deemed an occurrence prior to any insurance is applied.
Business of Coverage
It’s great to understand all these terms and definitions you will find on your policy. But, it is also good to keep in mind that protecting your investments and yourself is a business to the provider or company you have your coverage through.
Coverage is a business and many people fail to realize this point. This business is a service that helps people in times of need, companies operate to produce a profit, and are in the business to collect more in premiums than they pay out in claims.
It really is that simple of a business model. Premiums keep profits going, and combined together can have a major effect on any company.
If all company’s had insureds filed a claim at the same time, then the company would go bankrupt, this is why collecting those premiums are so important.
Fortunately the odds of all people insured within one company all filling claims at the same time is with all accounts, incredibly slim from happening.
Continue to do Business
This is why companies continue to service this business.
To improve the odds of a company, insurers will make some kinds of coverage such as earthquake in California and homeowners protection in parts of Florida and other hurricane prone areas, very hard to get or if obtainable, very expensive.
If you file a lot of claims, your company will raise your rates. It’s a known fact, and it’s not to punish you but to make sure it can still earn a profit.
This is becasue claims are often lead to higher rates and it is important to avoid filling small claims.
The study of coverage is full of jargon that is not known by most outside the industry.
It is important to understand the basic concepts. This will help you understand the process a little better if you should have to deal with a claim or loss.
The worst time to learn anything is under stress or distress.
That is why it is important to read your policy language, ask any questions to statements you don’t quite understand or if you have a simple request to make during your policy period.
If you are shopping for the best coverage for your home or vehicle in California, regardless if you live in Anaheim CA, or San Diego CA.
If so, make sure you are comparing the right quotes that provide the right coverage and protection for your personal needs.
Remember, finding the cheapest car insurance starts with bundling your renters policy with it. If you have questions or just need information on what exactly renters insurance will cost you, contact us at 800-962-0085!
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