Renter’s insurance does not hold as much importance as making rent or paying off utilities for some people. In fact, only 37% of renters get a policy in comparison to the 95% of homeowners who have one, according to the Insurance Information Institute poll.
Most people assume their landlord’s insurance covers them for any eventuality. But this is a mistake, which only becomes apparent when a calamity strikes. Fortunately, renter’s insurance in North Carolina does not cost as much as neighboring states, South Carolina and Kentucky.
Here’s what you need to know about NC renter’s insurance.
Renter’s Insurance Protects the Personal Belongings in Your Rental Home
Renter’s insurance, also known as tenant’s insurance, is applicable to individuals who are staying in a rental property. It protects you and your personal belongings against certain risks such as fire, water leakage, theft, and vandalism. It also protects you from additional living expenditure when the rental property becomes temporarily uninhabitable.
Tenant’s insurance helps minimize the financial impact of certain situations such as injuries and break-ins in your rental home.
If you’re still wondering about the importance of getting a renter’s insurance in NC for your rental home, think of it this way: the landlord’s insurance coverage protects the building structure, not the actual property. It’s your responsibility, not theirs, to protect the contents of your home—even if you’re simply renting it from them.
Renter’s Insurance NC Covers a Variety of Expenses
Renter’s insurance serves as protection for you and your belongings in case of an unforeseen incident in your rental home. It could give you peace of mind, knowing that you have a financial safety net in case anything unfortunate occurs.
A renter’s policy includes a series of coverage that shoulder the cost of repair and replacement of damaged belongings due to fire, water leakage, tornadoes, theft, or vandalism. It does not normally cover expenses, however, when the damage is due to floods, earthquakes, and pests.
The coverage typically includes:
- Personal Property
- Additional Living Expenses
Your renter’s insurance in NC shoulders a variety of costs as long as they are within the coverage limit.
Separately, your belongings may not seem like they cost a lot. Together, however, they could add up quickly and overwhelm you. The accumulation of damaged and lost belongings might be financially difficult to replace. Fortunately, the personal property coverage of your renter’s insurance NC enables you to replace them without the heavy costs.
Personal property coverage includes the cost of repairing or replacing personal belongings affected by unforeseen incidents such as fire, tornadoes, water leakage,theft, and vandalism. It encompasses almost everything in your rental home, from the furniture to your clothes.
Like with other types of insurance, though, it has coverage limits. This means it cannot pay for all your damaged or lost belongings. Miscellaneous possessions such as jewelry and hobby collections, for example, may need additional coverage. As such, it’s important that you go over the policy carefully.
By going over the renter’s insurance policy, you will be able to set a personal property coverage limit that is appropriate for your financial situation. You get to set the maximum amount of coverage as well as what the policy may or may not cover. You also get to decide the type of coverage you will receive: cash value or replacement cost.
Fire, tornadoes, water leakage, theft, and vandalism are not the only unexpected things that may occur in your rental home. You may also encounter accidents that result in personal injury or damage to property. In some cases, you might be legally responsible for medical bills or repair costs. The liability coverage of your renter’s insurance NC will help you pay for such expenses.
Liability coverage is a type of protection that generally comes with the renter’s insurance policy. It shoulders the repair costs when you accidentally damage another person’s property. It also shoulders the medical bills of a guest whose injuries were sustainedin your rental property due to your actions or negligence.
But while it helps cover liability costs, the coverage may not be enough to completely pay for it. As such, you need to read through your policy meticulously to find out exactly how much it can cover.
You also need to study the liability coverage limit carefully. If you believe that additional coverage is essential, your insurance agent can help you make the necessary adjustment.
Additional Living Expenses
Certain unforeseen incidents—fire or water leak damage, for example—could make your rental home uninhabitable. In such cases, you have to look for a temporary place to stay or spend more on food than you normally would. Your renter’s insurance NC may include additional living expenses coverage to shoulder these expenditures.
These may include hotel bills or food expenses or restaurant meals, storage fees, and other relevant extra costs. The coverage alleviates the burden and stress of not staying in your own place. But you need to read your insurance policy beforehand to understand exactly what the policy covers and if it will be enough to sustain your living expenses.
Your renter’s insurance protects your personal belongings through personal property, liability, and additional living expenses coverage. Keep in mind, however, that it does not cover the actual building you are staying in. Your landlord is the one responsible for protecting the structure so it isn’t included in the renter’s insurance policy.
Renter’s Insurance May Cover Belongings in a Self-Storage Unit
You may arrange an insurance policy with the storage unit company but your renter’s insurance NC may also cover the personal belongings you have in a self-storage unit.
The coverage includes pretty much the same things that the insurance policy covers within your rental home. This means the furniture, appliances, electronic, and clothes in your self-storage unit are subject to the policy.
You can have peace of mind knowing that the renter’s insurance policy covers the personal belongings in your self-storage unit in case of a fire, tornado, or water leak damage. It also covers you in case of theft or robbery. The policy does not cover damage from floods, earthquakes, and pests, though.
24-Hour Phone Service for NC Renter’s Insurance
At Amistad Insurance, our renter’s insurance is available across North Carolina. We have agents in areas such as Raleigh, Charlotte, and Durham to address all your concerns and to find a renter’s insurance policy that matches your budget.
We can help you arrange a renter’s insurance policy with an average cost of $7 per month. Talk to us about it. Our phone line is open 24 hours a day.