When moving your family into an apartment, there is a lot to consider. Is there enough space? Is it near a good school? Is it kid-friendly? All these things will be on your mind when shopping, and when you finally find the right place, it can be easy to forget about the finer details — such as renters insurance.
Most landlords require renters insurance these days. Even if they don't, coverage for yourself and your belongings is crucial in case of an accident. A fire can destroy over half or even all your belongings, and without insurance, you'd be looking to replace everything out of pocket. It's important to understand the details surrounding renters insurance when you're living with your family, however. There are many different rules in place when it comes to renters insurance and children.
In general, your renters insurance policy will cover your children. Renters insurance policies cover three main areas:
- Liability: Liability insurance steps in if you or a family member accidentally causes bodily injury or property damage to someone else. It can help with the victim's medical expenses and your legal fees if the victim decides to sue.
- Personal Possessions: Personal possessions coverage covers your belongings in case of loss or damage due to fire, smoke, lightning, theft, vandalism and more.
- Additional Living Expenses: Additional living expenses (ALE) helps with the cost of temporarily moving if a disaster renders the rented property uninhabitable.
Liability insurance will cover bodily injury or property damage that your child causes to someone else. Children under 13 may be covered even if the act of injury or damage was intentional.
Renters Insurance With Spouses
With spouses, renters insurance can become trickier. If you live with a married partner, your partner will be covered under your policy. If you're not married, they can be added to your policy. Be careful about getting enough coverage, however. If you have two spouses and children on one policy, you will need a lot more in coverage limits than a renter with only one policyholder. Also keep in mind that you cannot transfer renters insurance policies. If, for some reason, you, as the policyholder move out, you cannot transfer your policy to your spouse. Your spouse would have to purchase their own renters insurance policy, while yours would follow you to the next rented location.
What Does Renters Insurance Cover?
Children often have a lot of toys. Teenagers, meanwhile, have a multitude of electronics from phones to iPads to gaming systems. Items like this (not to mention your own) can be expensive to replace. Unfortunately, that makes them more expensive to insure. Items that have limited coverage on a basic renters insurance policy include:
You can purchase "floaters," which are additions to your policy to cover specific expensive items. Your wedding or engagement ring, for example, is an extremely expensive piece of jewelry that may not be covered under renters insurance. With a jewelry floater, you can ensure that you'll be able to find another ring of similar value or repair one that’s been damaged.
Renters insurance also doesn't cover damages due to floods and earthquakes. Some water damage is covered, however, such as suddenly burst pipes.
How Much Is Renters Insurance?
Renters insurance with children may cost more, both because they have more items to cover and because they're viewed as more likely to have an accident that would lead to filing a claim. Other influences on your renters insurance rates include your credit score, claims history and location. On average, the cost of renters insurance is about $17 a month.
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