Renter’s insurance or tenant insurance is gaining traction for the numerous benefits it offers. With the increasing urbanisation and higher rents, people understand the need to protect their personal belongings. In India, certain regions are prone to earthquakes, floods, and other natural calamities, which can cause damage to valuables. Home insurance coverage held by the homeowner may also not cover protection for your personal belongings. Accidental damage to the rented property can also result in huge repair costs. Hence, it is imperative to avail a tenant’s insurance coverage for financial protection.
If you are renting a home or apartment in India, you need to understand the coverage offered and the amount of renter’s insurance coverage you need to protect your valuables and safeguard yourself from liabilities.
Scope of Coverage under Tenant Insurance
The following are the coverages offered under the renter’s insurance:
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Personal Property Coverage
The policy provides coverage for the cost of repairing or replacing your personal belongings in case of loss or damage due to events like fire, theft, natural calamities, or vandalism.
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Liability Coverage in renter’s insurance
Liability coverage protects your finances if someone is injured on your rental property and pursues compensation for medical bills or damages. It also covers unintentional damage you may cause to the landlord’s property.
For example, a guest trips and falls in your rented apartment and sues you for INR 2 lakh of medical bills. In this case, liability coverage would cover the cost, preventing you from paying out of pocket.
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Alternate Accommodation Expenses
If your rented house becomes uninhabitable due to fire or flood, the policy provides cover for temporary accommodation costs.
For example, you are forced to move out of your rented home in Bengaluru as it is severely damaged by a fire. The renter’s insurance policy will cover your temporary rental costs until your apartment is repaired or you find a new place.
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Optional Riders for High-Value Items
You can avail of additional coverage at an added cost of premium for the valuable items you own such as expensive jewelry, antiques, or artworks.
Calculation of Renter’s Insurance Coverage
Here are the ways to decide the renter’s insurance coverage you need:
- Take inventory of your valuable possessions like electronics, appliances, jewellery, and furniture.
- Calculate the approximate value of your belongings and special items.
- Consider the rents and cost of living based on the location/city you live. Metropolitan cities like Delhi, Mumbai, and Bangalore are expensive in comparison to tier II or III cities.
- Estimate the liability cover based on the healthcare costs. If you host guests frequently, you may need higher liability coverage to protect yourself from potential accidents.
- Estimate the coverage based on the risk of natural calamities in your region. In areas prone to natural disasters like floods or earthquakes (for example: coastal cities like Chennai or Kolkata), it is wise to choose higher coverage.
Using a renter’s insurance calculator is one of the easiest ways to estimate the renter’s insurance coverage that you need based on the need and affordability.
What is the Renter’s Insurance Cost Calculator?
Renters insurance premium calculator is a valuable online tool that helps you estimate the coverage you need within your affordable budget. Here is how you can use renters’ insurance calculator:
- Enter the estimated total value of your belongings and special items.
- Choose the amount of liability coverage you are comfortable with as per the location and healthcare cost estimate.
- Select a deductible (the amount you will pay out-of-pocket before insurance kicks in). Remember, opting for a higher deductible can lower the premium.
- If you need additional coverage for specific items/high-value items like jewellery or artwork, include that.
- Click on ‘calculate premium’ to get the result for the estimated premium.
Conclusion
To sum up, the amount of renters insurance coverage you need depends on the value of your belongings, the risks associated with your city or location, and your lifestyle. Use a renter’s insurance premium calculator to get an accurate estimate based on your needs and affordability to stay well-protected. It is important to consider all the details of your belongings, special items, location, and other details to determine the right amount of coverage.
