The current COVID-19 pandemic has tremendously affected the economy. Both the private and public sectors feel the weight of COVID-19. The loss of employment and the depletion of savings since the outbreak have now further intensified the relationship between tenants and landlords. People worry about their insurance and mortgage payments and they seek financing tips on pre-construction condo mortgages among other financial matters concerning stay. However, if you have renters insurance, then there are some provisions protecting your interest.
Now, what is renters insurance? A renters insurance is simply a safety net for the renter, not the landlord. Renters insurance revolves around the renters needs and his/her possession. A renters insurance is a financial safeguard for your personal property if it is damaged or stolen as per your rental insurance policy.
If you are looking to invest in real estate during COVID-19 pandemic, make sure you check this page to know important tips as an investor. We bring to you a few key points about renters insurance that you may benefit from particularly during COVID-19 pandemic.
- Is your rent covered under renters insurance?
Normally renters insurance does not cover your rent but the landlord insurance (landlord insurance is a type of insurance policy specifically designed to protect the landlord) covers the rents lapse for specific reasons as per their provision. Landlord’s insurance has optional coverage for loss of rental and rent default. Business interruption insurance may provide coverage for loss rents but whether such coverage exists depends on the specific wording of the policy. If you are a beneficiary of rent guarantee insurance, mostly undertaken by the landlord, is risk-management insurance that protects landlords against loss if the tenant fails to pay the rent. Under this, renters insurance pays the monthly rent for a specific period if the covered tenant stops making payments.
- Renters Insurance and Temporary moratorium on eviction
All the governments of the world are stepping up to protect tenants and the landlords by providing aid, schemes and job opportunities to minimize the impact and control due to the spread of COVID-19 virus. Anticipating that many tenants are not likely to be able to pay their rent due to a loss of income, a growing number of states and municipalities have taken action to temporarily suspend evictions as one method of relief. There is a sense of security for your possessions as well as your rent during this pandemic, thanks to the governments and your renters insurance. If there is physical damage and your current stay needs to be shifted, the damage during such times is covered under the renters insurance.
- Payments of renters insurance during COVID-19
Understandably, many tenants may be facing some difficulty in keeping up with payments of their renters insurance due to the loss of revenue. And for these, various authorities and insurance providers have intervened and provided provisions to protect those under financial crisis. Measures like providing extended dateline, grace period of a minimum of 30 days and removing additional fines due to delay of payments have been put into measure. Depending upon the insurance you currently have and the legislation enforced by the concerned authorities you can be certain how to proceed further. To ensure proper service to policyholders and customers, all the insurers have been asked to maintain continuity of business.
- Safe storage with renters insurance
In case you are deciding to switch to a more economic area because of the current pandemic. If your renters insurance has proper coverage, then your possessions can be stored in your storage for a short time while you are seeking a new place. If you are storing up high-value equipment or jewelry, you must make sure your insurance covers it. Reputable storage providers regularly maintain surveillance systems and access control systems that monitor and keep your valuables safe.
How do you know if your insurance covers storage?
It is advised to contact your insurance provider or read the policy of your insurance (or both). Some homeowners and renters insurance policies will cover items stored off-site; if they don’t, separate insurance coverage is necessary.
- Coverage in your rental insurance to rescue
During the current pandemic when a lot of businesses are at a halt, the chances of difficult experiences are high. Suppose there is an emergency, a gas leak, a fire or any physical damage and the rescue is hindered due to unprecedented reasons and the damage was done. Your rental coverage insurance will be a source to reimburse the damage plus cover your stay in a temporary relocation. You can leave your home until the damage is brought under control and repaired. Lucky for you, that is just one of the benefits of renters insurance that you can enjoy. Another benefit of renters insurance is you might also be renting some of the furnishings within to someone in need during these times. If you have a good policy, your renters insurance should also provide coverage for such rented items.
Lastly, we have to be mindful of the insurance we are legally entitled to. Opting for the right insurance in the past has surely helped in your expense during this time and also provided a sense of security. It is advisable to enhance our insurance policy and our coverage for the future. Through this pandemic, there is a realization of how vital role renters insurance plays in our lives and our loved ones.