If you’ve recently arrived in the United States and your landlord is asking you to get Chicago Renters Insurance, you may not be familiar with that kind of insurance. You may not even have anyone local who you can ask questions. Let’s dig in a little bit and tackle what your renters insurance in the US covers, why your landlord wants you to have it, what the penalties for not having it are, what it will cost, and how you will pay for it.
How Do You Pay For Renters Insurance In The US?
To buy renters insurance in the US, you’ll probably want to speak with someone on the phone. It can be done online, but not if you need to add roommates or have other special considerations. So you’re on the phone with someone and you’ve agreed to a policy. How do you pay for it?
You give the person your credit card or debit card number and expiration date.
No link for payment will be sent. If you’ve started a transaction on the telephone, you complete that transaction on the telephone. This includes payment.
Making payment via phone for renters insurance in the US is secure. You have very limited liability if your card is compromised (often as low as $50) and the person on the other end of the phone works for a well established company with security practices implemented. You’ll know immediately that the card approved, because you won’t get a policy number without it.
Please note that renters insurance in the US is priced based on rates that are filed with the state. These rates, and any available discounts, are applied to your personal situation and set of risks to generate a price. Insurance companies generally cannot deviate from those filed rates, and they certainly may not do so just because someone asked for a discount. Insurance prices are not negotiable.
What Does Renters Insurance In The US Cover?
Your personal property, whether you have much or only a little, is covered against perils such as fire, theft, and vandalism. Here’s the full list of renters insurance perils. This protection generally pays replacement cost, so you can go and buy new property. Keep in mind that certain classes of property such as jewelry, gold, and silver have significant limits on theft coverage unless you declare the items and pay a premium for that coverage.
Your liability coverage does two things. First, if you are sued for allegedly causing bodily injury or property damage, the coverage would pay for that loss if appropriate. But before that, it also pays for a defense against those claims. Renters insurance in the US is written with the understanding that lawyers are expensive, and that the insurance company deserves to defend against claims that would cost them money. As a result, they pay for the lawyer. That person is still your lawyer, with a duty to you, just being paid for by the insurance company.
If you had a kitchen fire in your apartment, liability would pay for the damage to the apartment as well as for damages suffered by others as a result of your fire. It would also defend you against those claims. But while you’re not able to use your apartment after the fire, where will you go? Renters insurance in the US has you covered there, as well. Loss of use coverage pays for additional living expenses such as a hotel during that time. Medical payments to others is a coverage which makes a small payment to a guest in your apartment who is injured, no matter who is at fault, in order to settle the matter quickly and amicably and with no discussion of actual damages.
All of this is contained in your policy contract for renters insurance in the US. You’ll receive a declaration page stating amounts of coverage, as well as the policy contract. Read the policy contract to understand the coverage, and contact your agent with questions about that coverage. They’ll be happy to answer your questions.
Why Does My US Landlord Require Renters Insurance?
Renters Insurance In The US For New Arrivals Doesn’t Have To Be Confusing
Your US landlord requires renters insurance because they want to know that, if there are damages caused by your negligence, that they can be paid for. Commercial insurance deductibles are frequently as high as tens of thousands of dollars, in which case they’ll seek recovery directly against your policy. If the damages are worse, their insurance will pay for it, but… Their insurance will seek reimbursement from you. Your renters insurance defends against and pays that liability claim.
In the US, the landlord never has responsibility for your personal property. Your landlord knows this, but many tenants do not. By requiring renters insurance in the US, landlords are able to make sure that tenants have coverage for their personal property while also ensuring the tenant understands that the landlord does not and cannot insure tenant property.
What Are The Penalties For Just Not Getting Renters Insurance In The US?
No state or Federal law requires you to have renters insurance, but your lease probably does. Your lease is a binding contract on you and the other people on it. If you’re required to have renters insurance, the lease will spell out what happens if you don’t have coverage. This could range from a small extra charge all the way up to losing your apartment. The penalties are not worth risking.
How will the landlord know that you don’t have renters insurance if you buy a policy and then cancel it or let it lapse? When you first bought renters insurance in the US, your landlord probably required you to list them as “additional interest” or “interested party”. This means that the landlord will be notified of renewals, cancellations, lapses, and other changes in the status of the policy. They will know.
How Much Does Renters Insurance In The US Cost?
If you’re new to the US, you should know that in most states credit score is a rating factor. Since you don’t have a credit score yet, you’re an unknown risk. The average price of Chicago Renters Insurance, for example, is about fifteen dollars a month. As an unknown risk, you might pay twenty or so dollars a month for the coverage. Renters insurance in the US is still an incredible value, and your landlord requires it.
Who Can I Call To Get Renters Insurance In The US?
Effective Coverage specializes in making renters insurance accessible to everyone, and we work with a number of underwriters to make that possible. We have a policy to meet your needs, and it only takes a few minutes on the phone to get covered. Our insurance experts for renters will be happy to address your questions, as well. Just call (800)892-4308 or click to get covered - whether you need Chicago renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
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