Renters insurance is one of the most important investments for those who live in properties owned by someone else. It provides a wealth of financial protection. Its aim is to protect you, the renter.
However, it often does not protect the property owner. It does not protect any of the property owner's possessions either. In this way, most policies do not cover appliances. There are some limitations here. You should read through your policy to know the specific coverage you have.
Understanding Personal Property Coverage
Renters insurance includes personal property coverage. It can cover the cost to replace your belongings in the instance of a covered loss. Losses may result from fires, theft, vandalism or storm-related loss. That does not mean your policy includes all of the items within your rented space. Typically, appliances and other furnishings owned by the property owner will not have coverage under your policy.
Here are some examples. James home starts on fire due to a faulty appliance. The property owner provided the stove. The property owner bought and maintains the stove. When James moves out, he cannot take the stove with him. In this case, the renters insurance policy paid by James does not cover the stove. The property owner's coverage will cover not just the appliance but other losses James incurs since the owner is likely liable.
However, down the hall, someone steals Liz's microwave from her home. Liz purchased and maintains the microwave. She will take it with her when she moves. This is part of her personal property and possessions. In this case, the renters insurance policy will often cover the microwave loss. The policy will pay Liz based on the value and terms of the policy. She will not need to file a claim with the property owner's insurance.
It is important to remember that renters insurance has limits. These policies usually have a maximum amount of coverage per item (such as the value of the microwave). It also has a maximum total payout for the incident. You can adjust how much this is, though.
Work with your renters insurance agent to learn more about your policy. Clarify which appliances you own. Be sure your policy offers enough coverage to reduce the risks of loss regarding appliances. A clear policy is important in every case when it comes to renters insurance and property ownership.
Talk to an insurance agent with Insurance Planning Service at (800) 220-5582 about how we can help you get appliance protection. They can help you determine how to best structure your policy.
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