Natural Disasters And Your Home Renters Insurance Policy

By Author: Frank Kasimov
Total Articles: 4762
Comment this article

To rent a home instead of or while saving to buy your own home is common in the United States and many people find it a convenient and cost-effective way of life. To rent a home gives people the freedom to move as and when they want or need to. Many renters, however, are not aware of the benefits of having a renter's insurance police covering natural disasters.

What is a Natural Disaster?

A natural disaster is defined as an event or force of nature leading to catastrophic consequences. These events include avalanches, earthquakes, floods, some fires, hurricanes, lightening, tornados and even a volcanic eruption or tsunami. They are events that lead to the destruction of property. One need not look far to understand what impact such an event can cause. Recent examples such as Hurricane Katrina and the mudslides and fires in California are warnings for everyone. These "acts of God " cannot be prevented but some simple planning can minimize the impact and help individuals recover more quickly.

Who is Responsible for What?

It is the responsibility of the homeowner to hold the appropriate insurance ...
... to cover the property itself. However, many renters do not realize that this insurance does not cover the renter's private property. They also do not consider how they will pay for any costs they incur, having lost their primary residence. These expenses may include finding alternative accommodation, while their rented home is being repaired or simply finding a new permanent home.

What Renters Need to Know

When renting, it is important to consider what would happen in the event of a natural disaster and look into what impact this event would have on the renter. If the rental property was uninhabitable, where would you live? Would you need to organize hotel accommodation? If so, can you afford to pay for a long-term stay in a hotel? Would you need to find a new permanent rental home? If so, can you afford the moving expense, deposit, and any other related costs?

Many also do not consider how much their personal property is worth or realize that their personal property is not covered within the homeowner's insurance policies. Renters should, therefore, consider how much their personal property is worth. This includes clothing, shoes, jewelry, electronic equipment such as computers, laptops or notebooks, cell phones, iPods, and televisions, along with any personal furniture and household items such as bedding and the like. No personal item belonging to the renter is covered in the homeowner's insurance.

Renters should, therefore, consider their personal circumstances and whether insurance coverage for natural disasters would be a sensible safety net. When considering the options and looking at various policies, renters should consider the amount of deductible they are able to meet and the Actual Cash Value (ACV) of any personal property. The ACV is the amount the items are worth at the time of loss and not the "as new " value.

The Replacement Cost is the amount needed to cover the "as new " value to replace the item. To include Replacement Cost, the premium will increase but in most cases, it is a minor increase and definitely worth considering for major items.

While considering insurance, renters may also want to assess other insurances that they may require. Most will want to have insurance that covers property damaged or stolen in a burglary. It is also worth inquiring with the homeowner whether injuries to third parties, such as visitors to your rental home, are covered on any insurance policies held. If not, it is something that a responsible renter should also consider.

Exactly what coverage is right for you will depend very much on personal circumstances and the area you live in. Renters in California, for instance, will definitely want to consider events such as earthquakes and fires as priorities. Renters should consider the history of their own region for natural disasters to understand which disasters are most prevalent in their area.

Finally, always check the fine print. One natural disaster often brings another. For example, an earthquake often results in fires breaking out and hurricanes often lead to flooding. It is vital to understand what your coverage includes. Do ensure you know exactly what is and is not covered.
About Author:
For consumers looking for insurance online and where to get the best auto insurance quotes possible, look no further than 2insure4less.com. Whether it is auto insurance, home insurance, health insurance, life insurance, cancer insurance, disability insurance, business insurance quotes or burial insurance, 2insure4less has helped countless consumers find insurance online.