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7 Questions to Ask When Choosing Apartment Insurance

Written by Posted On Monday, 17 February 2020 23:14

Before settling on the first insurance plan you find, do your homework. Here are 7 questions you should ask before choosing an apartment insurance provider.

After searching for months, you've finally found the perfect place to call home sweet home. It's time to gather up your belongings and move in!

But before settling down, you should invest in apartment insurance.

It may not seem that important, but apartment insurance is essential. It would protect you if something terrible were to happen to your apartment.

Think about it:

If a fire or burglary took place, wouldn't you want insurance to cover it?

Before signing up for renters insurance, you should ask questions of the provider. It's vital to know what you're signing up for, as you wouldn't want any surprises down the road.

So, do your homework. It's vital to find a provider who answers all your questions and puts your mind at ease.

Here are seven questions to ask when picking an apartment insurance provider:

1. What Does Apartment Insurance Cover?

Renters insurance has a technical name, which is an HO-4 policy. Almost all HO-4 policies cover the same types of damage:

  • Vandalism
  • Windstorms
  • Theft
  • Smoke
  • Freezing of household appliances
  • Falling objects
  • Explosions

But, specifics can still vary by state and plan. So, it's a good idea to find out what each plan includes.

You wouldn't want to learn that your policy doesn't cover a certain type of damage after it occurs.

Do you live in a state that's prone to earthquakes or flooding? If so, ask the prospective company whether you'd need a separate policy for those types of damage. You could always add earthquake or flooding coverage to your policy if necessary.

2. Should I Get Additional Coverage?

As we mentioned, insurance policies vary by state, and you may need to add coverage to your policy.

Many plans cover all of the items in your apartment. But, some plans don’t cover things like firearms, jewelry, and antiques. So if you keep these things in your apartment and you want to ensure they stay safe, you may want to get separate coverage for them.

Something could get stolen down the road, so it's best to find out what they would cover. Ask if you need additional coverage for expensive or sentimental valuables.

3. What Is My Deductible?

The deductible is the amount that you must pay when you file a claim. This is an aspect of nearly every type of insurance plan, from renters insurance to car insurance.

If your apartment got broken into, you’d have to pay a deductible before they’d cover the rest of the claim.

For example:

Say your deductible is $500, but you submit a claim for $6000. Before the insurance company would pay for the claim, you would have to pay $500.

If you don't know what your deductible would be, find out before buying a plan.

4. Does Renters Insurance Include Pet Liability?

If you have a pet, you should ask if the plan includes pet liability.

It’s unlikely that your pet would cause damage to the apartment, but it’s always better to be safe. In the event that your pet did ruin the carpet or chew through the wall, you’d want to have insurance coverage.

Some companies only cover certain animal breeds. And other companies don’t cover animals at all. That’s why it’s crucial to ask your insurance broker about their options for pet-owners.

5. What Do I Need to Submit a Claim?

You should also ask how claims are submitted. Inquire about the steps you’d have to take in order to be compensated for damage.

It's good to know ahead of time what type of documentation they need during the claim-filing process. They'll likely tell you to take a lot of pictures, save receipts, and log serial numbers.

Another way to make claims easy is by creating an inventory list for insurance. But, you’ll only know to do this if you ask your provider ahead of time.

6. Will My Rate Go Up if I File a Claim?

It's common for your apartment insurance premium to increase after you submit a claim. To find out how much it would go up, ask ahead of time.

Also, keep in mind that if you file too many claims, an insurance company may drop you.

It's normal to submit a claim when damage occurs. But if you happen not to file any claims during a certain period, you may receive a discount!

So, it's in your best interest to find out how your plan works before committing.

7. Will Insurance Cover Expenses if I Have to Move Out Temporarily?

Most policies help with lodging costs when you have to move out of your apartment during repairs. This is a great perk, so ask your provider if they offer it.

And if they include it, ask how it works. Some providers cover the cost of a temporary rental for several months, while others only cover a few nights in a hotel.

Before you choose a plan, ask about this. That way, if your apartment is ever seriously damaged, you won’t have to worry about where you’re going to sleep.

In Conclusion

Before you start buying new furniture and decorating your apartment, make sure you have renters insurance. In the event of an emergency, insurance coverage is essential.

Asking questions will help you select the best coverage. And you’ll also know what to do if your apartment were to get damaged.

The fact that you read this article is a good sign that shows you’re making wise rental decisions.

With the right apartment insurance plan, you’ll be able to sleep soundly, knowing that everything in your home is covered.

Author Bio:

Julie Contos is the Director of Marketing for J Malden Center, a luxury apartment community in Malden, MA.

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George cunningham

George cunningham is a residential real estate investor. he also is a licensed real estate. He enjoys sharing his thoughts on real estate topics.

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