The Top Endorsements You Shouldn’t Ignore When Renting

August 2, 2019

Renter’s insurance protects your belongings and financial wellbeing should someone get hurt in the home or condo you rent. It doesn’t cover damage to the home itself, though, the landlord must provide this coverage. While renter’s insurance provides protection from theft, vandalism, and legal costs from an injury, it doesn’t cover everything.

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Considering the following endorsements may help you have the level of protection you need.

Scheduled Property Rider

Your renter’s insurance only covers each item up to a certain dollar amount. If you have items that have a high value, the value may exceed the coverage offered. A scheduled property rider provides extra coverage for your high-value items.

In order to get the rider, you’ll need to show your insurance agent proof of the items’ worth. A receipt or recent appraisal typically does the trick. The insurance company needs to know the item is worth the amount you insure it for in order to provide the protection and reimburse you should you file a claim.

Replacement Cost Rider

You have two options when buying insurance – replacement cost or actual cost coverage. Actual cost coverage will cost you less, but you will get less coverage. Actual cost coverage takes into account depreciation, rather than paying you what it costs to replace the item in today’s money.

If you want actual cost coverage to keep your insurance affordable, you can buy replacement cost riders for certain items. If you experience a loss, you will get the higher replacement cost for the items you purchased the rider for, helping you to avoid an excessive loss.

Pet Damage Rider

Pets pose liabilities in more ways than one when you rent a property. Pets can hurt someone or something, both of which renter’s insurance may not cover. If your pet damaged the home, the financial responsibility may fall on you to fix it. If your pet bit someone and they had hospital bills and a loss of income as a result, the financial responsibility may fall on you.

Your renter’s insurance may include basic coverage for pet damages, but it may not be enough. You may also need a rider if you have a specific breed or type of pet. Each insurance company differs in its requirements. Asking your insurance agent specific questions about your pet and the type of coverage you have will help you determine if you need a pet damage rider too.

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At-Home Business Insurance Riders

If you operate a business in your home, you may need an at-home business rider to cover any equipment you use. Your renter’s insurance covers your personal belongings only. Any computers, electronics, or other high-priced items you use to make a living are a part of your business. Your insurance company has the right to decline your claim for any items that belong to your business if you don’t have at-home business riders.

Do You Need Renter’s Insurance Riders?

How do you know if you need renter’s insurance riders? Talk to your insurance agent. Discuss the limits of your policy so that you know what type of coverage you have. You don’t want to wait until you have to make a claim to find out the hard way that your expensive items or pet damage don’t fall under the policy.

Renter’s insurance riders typically don’t cost much. For a small amount of money, you can usually add the riders, giving yourself extra protection. If you don’t use the insurance, consider it money well spent. If you need to make a claim, though, the insurance can come in handy, helping you to have financial assistance during a time of crisis, whether theft, vandalism, or damage due to fire or flood.

Talk to your insurance agent about the limits of your renter’s insurance. If your insurance company doesn’t offer the option to increase your coverage, consider one of the riders above. They can help protect you in the face of disaster, giving you a better chance at coming out of a disaster with your finances intact.

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