Renters insurance, also called tenant homeowners insurance or apartment insurance, is probably the single best “deal” in the insurance industry. Policy holders get a lot of benefits for a small premium.

Many apartment complexes, and many smaller landlords, require their tenants to carry this insurance as a condition of their lease. However, even if a renter is not required to purchase it, it still makes a lot of sense.

Tenants insurance policies are most often written on a standard HO-4 policy form. The HO-4 policy form provide coverage for 4 distinct types of losses for a low price. The coverages include Personal Property, Additional Living Expenses (sometimes called Loss of Use), Personal Liability, and Medical Payments.

Losses involving personal property occur frequently. Personal property coverage is part of the HO-4. This covers much of the personal property of the insured anywhere in the world for things like fire, theft, and vandalism. Worldwide coverage means it covers clothing stolen from your bags outside of the US or your personal property is stolen from the back of your truck. Property coverage is on a named perils basis – that means that the policy says exactly what it\’s covered against, and if it\’s not listed, it\’s not covered. Examples of uncovered loss, would include leaving a laptop behind after exiting a bus, or damage to a television by a thrown baseball. The plan also includes built in limitations of coverage for things like cash, jewelry, coin collections, and handguns. For an extra cost, some of these coverages can be extended onto the contract via endorsement.

Additional Living Expenses coverage, can pay for you to live in a hotel should your apartment become uninhabitable due to a covered peril. Most frequently, this is invoked due to a fire in the unit.

Personal Liability is also a frequently used coverage. It pays for lawsuit defense and judgment payment for the insured if they are sued for a covered cause of loss. This typically includes dog bites, slip and fall claims from visitors, or even a tripping accident involving a child.

Medical Payments coverage pays for a limited amount of medical bills only coverage, for someone who is injured on the property who is not a resident. This is “no fault” coverage . It doesn\’t matter who caused the injury. It won\’t matter how it happened, or who was at fault for it. For example if someone slips on your stairs and gets injured, and doesn\’t live in the household, Medical Payments coverage can apply. Keep in mind, only the insured can file the claim.

Currently, a renters insurance contract will cost around $150 or $200 annually, for $20,000 of coverage on contents, $4,000 of additional living expense, $100,000 of personal liability, and $1,000 of medical payments coverage. Better yet, if a tenant homeowners and auto policy are written with the same insurer, they will usually offer discounts on BOTH policies, from 10% to up to 40% depending on any individual company, with an average being around 25%.

Because the cost of apartment renters insurance is so low, even the tightest of budgets can usually find a way to manage the cost. In fact a multi-policy discount can make the rate extremely low.

When you insure your automobiles with the same insurance carrier, your bills may be lowered by a greater amount than the renter\’s insurance costs. This can mean that you get the renters insurance plan without paying a greater amount than you pay for the auto insurance contract. That combined DECREASE in insurance cost, with an INCREASE in coverage, is what makes an apartment renter\’s one of the best deals in the insurance industry.

Author Bio: The author writes on his blog frequently. His most recent posts include one about insurance for a covered trailerAlston J Balkcom can help you find better house insurance quotes on his house insurance comparison site

Category: Finances
Keywords: rental insurance.homeowners insurance,apartment insurance