The housing demand has been on the rise especially due to the strict lending conditions. Michigan is a business city and most people opt to rent than buy. It would be devastating to wake up one day and find all your personal belongings gone due to a peril. This is why it is wise to cushion yourself against such an eventuality by getting a renters insurance coverage. Contrary to common belief, renters insurance is not expensive. According to the National Association of Insurance Commissioners, renters insurance can cost a household from $15 to $30 every month. If you are contemplating renters insurance, here is what you need to know.
Renters Insurance Coverage
Renters insurance provides coverage against perils. Insurers in Michigan mainly cover policy holders against named perils. This means that in the event of loss, you will be covered for the perils that are named in the policy document. The most common perils include theft, water damage, smoke, fire, vandalism and lighting. Different insurers will cover different perils. If you live in an area prone to particular perils, you need to ensure that it is one of the named perils in the policy document.
Types of Renters Insurance Coverage
Insurance providers in Michigan mainly offer four types of coverage under renters insurance.
Personal property coverage
This covers for items used for daily use such as clothing, appliances, furniture, music equipment and jewelry collection. If you have very expensive or vintage items, you should consider getting a special cover for them. There are providers who will still cover for your items even if they are stolen outside your apartment. For instance, if your laptop is stolen in a coffee shop, you can still make a claim. This provision has limitations, so it is safe to cross check with your insurer.
Under this coverage, you are covered in the event that you are legally liable for bodily injury or damage to property involving another person in your household.
Medical payments to third parties
This pays for medical costs for guest injures in your residence, it does not matter whether you were liable or not. This type covers for medical costs such as medication, doctor’s fess, x-rays and hospital stays. Under this policy, the medical payments only apply to guests in your house.
In the event that you incur additional expenses due to loss, the insurance will cover the extra costs. This mainly includes hotel fees and commuting expenses. The loss of use provision will be clearly stipulated in the policy disclosure document.
Extended coverage is mainly an umbrella policy that covers for special or antique items. For instance, you could have art pieces that are worth more than your cover limit. Others special items under this category include; stamp collection, antique guns, and expensive jewelry. Ensure that these items are priced correctly so that you do not have to pay for them out of your pocket.
Renters insurance policies in Michigan, differ in terms of features and pricing structures. When comparing the policies, there are certain questions you need to ask the insurer. The following questions will reveal pertinent issues and in turn, help you make an informed decision.
Am I covered for all perils?
Most insurers will insist on covering you for named perils which are included in their policy document. In most cases, they do not cover for storms or wind damage. Floods and excessive rain are also gray areas for most renter’s insurance providers. If you live in an area that is susceptible to floods, you should consider getting a flood insurance cover.
Are other members of my house covered as well?
In most cases, renters insurance in Michigan will cover you and your immediate family members who reside with you. There are insurance providers that can cover your roommate. However, most will not cover for more than two roommates. The best thing is that these policies are not cast in stone. This means that there is always room to negotiate with your provider especially if you have unique circumstances.
Recovering from the loss of your personal items can drain you financially. This is why it is prudent to take out a renter’s insurance cover in Michigan.