Charles Goodman Group: Friendly Chappaqua Insurance Broker
Those who own their own homes or have a mortgage must hold some type of homeowners insurance. Most lenders let clients pay a flat fee every month that covers the mortgage payment and the cost of insurance. Those renting an apartment or another type of dwelling should opt for a renters insurance policy. Many people aren’t sure what this term means or what renters insurance covers, which is why they should meet with a Chappaqua insurance agent to discuss their needs and options.
Rental insurance is essentially a type of insurance available to those who rent a piece of property. Unlike homeowners insurance, which covers both the belongings inside the property and the structure itself, renters insurance typically only covers the personal property owned by those renting a dwelling. This type of policy can payout after a fire, a robbery or any other situation that causes the policy holder to lose some of his or her belongings.
The owner of that property should have a separate policy, but that policy only covers the items owned by the landlord. If a fire breaks out, the policy will pay for repairs caused by the fire. The policy will not cover smoke damage to the tenant’s property. Tenants living through a fire or some type of natural disaster will often find that they are responsible for replacing their own items.
The insurance agent experts at the Charles Goodman Group of Chappaqua can assist you with any questions regarding automobile insurance or life insurance.
Rental insurance typically covers all types of natural disasters and acts of god, including lightning, snow, ice, hail and fire. Many policies will also cover damage caused by freezing or water, which may include damage to clothing and furniture after a pipe freezes and bursts. These policies also cover loss of property after a robbery. Renters insurance usually will not cover damage to vehicles or injuries caused by a natural disaster.
Depending on the type of insurance, it may also cover damage done by the tenant. If a fire breaks out in an apartment that experts later deem was the fault of the tenant, the owner of that property may file a lawsuit against the tenant. The tenant’s rental insurance policy may cover part of a settlement paid to the property owner.
Renters insurance can protect tenants in the same way that other policies help homeowners. These policies use a replacement cost formula that determines how much a tenant should receive after losing property covered by that policy. With the right insurance, renters get peace of mind and perhaps money they can use to replace their belongings after a robbery or a natural disaster.