Can Renters Insurance Be Transferred?
In this article, we will be answering a question; “Can renters insurance be transferred“?
Before we go ahead, let us explain what renters insurance is and also talk about some facts about renters insurance.
What Is Renters Insurance
Renters insurance is a type of property insurance, often called tenants insurance. It is an insurance policy that provides some of the benefits of homeowners’ insurance, but does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure.
It provides coverage for a policyholder’s belongings, liabilities, and possibly living expenses in case of a loss event. It’s available to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft, or townhouse. The policy protects against losses to the tenant’s personal property within the rented property. In addition, a renter’s insurance policy protects against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property.
Renters insurance covers damage to or theft of personal property, personal liability damages, emergency medical expenses for guests and additional living expenses if you need to temporarily relocate. However, your insurer will not reimburse you for every event related to these coverages, as only certain events qualify for a claim.
The Renters Insurance Covers:
- Appliances and electronics you own
- Art and jewelry (subject to coverage limits)
- Sporting goods (e.g., bicycles)
- Any other property you keep in your home
However, the Renters Insurance does not cover:
- Structure of your apartment/house
- Permanent fixtures (e.g., stove and refrigerator)
- Your car
- Anything you keep outside your home
- Anything not owned by you
How Does Renter Insurance Work
Standard renters insurance policy has four types of coverage, each designed to pay for different expenses. A type of coverage would pay out if your belongings were destroyed in a fire, for example, while another type would cover your legal expenses if someone sued you.
Each section of your policy will pay only up to the limit of that coverage. The higher the limits you select, the more expensive your policy will be. But a policy with higher limits will offer more financial protection after a disaster.
The four coverage types of renters insurance policies are:
- Personal Property Coverage: It Covers your clothing, furniture, electronics and other belongings.
- Loss Of Use Coverage: Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.
- Liability: Pays out if you are responsible for injuries to other people or damage to their property.
- Medical Payment: Covers injuries to other people in your home, regardless of fault.
If something happens that you think your policy should cover, you will have to file a claim with your insurance company. Depending on your carrier, you may be able to do this online, through an app or by phone.
Provide as much detail as possible to support your claim, including photos or video of the damage, if applicable. A police report may be required for theft claims.
Your insurance company will review your claim. If it is approved, the company will reimburse you for the damage, minus your deductible.
Can Renters Insurance Be Transferred?
The answer is YES.
Renters insurance being a financial protection for renters can be transferred.
If you already have a renters insurance policy in force, there could be a few reasons why you would need to transfer it. One of the reason is if you are moving to a new place, you will need to transfer your policy to your new address, which is a relatively easy process. However, If someone new is replacing you in your rental, you cannot just transfer your existing policy to them, but they can easily sign up for their own coverage.
Before you think about transferring your renters insurance policy, here are key points to note:
- Before you transfer your renters insurance policy to a new address, shop around first, you may see a better offer.
When you move, you do not need to cancel your current renters insurance policy. You can usually transfer your policy to your new address
When you transfer your renters policy to a new address, you should keep in mind that your premiums might increase
- If someone new is replacing you in your rental, you cannot just transfer your existing policy to them, but they can easily sign up for their own coverage.
If you transfer renters insurance companies, you need to cancel your current insurance policy first.
Before transferring renters insurance companies, you should consider if you need to increase coverage or add endorsements to your policy. You should also ask what kinds of discounts your new insurance company offers and which perils their policies cover.