Renters insurance is a great policy which can cover your items in the event of a loss, such as fire, burglary and vandalism; however, not everything is covered by a standard renter’s insurance policy. For this reason, there are separate riders, or policies, to protect against additional circumstances which can be more common in certain geographical areas.
1. Earthquakes Are Not Covered
Earthquakes are not typically covered by a standard renter’s insurance policy. The most likely reason for this is that earthquakes are not a catastrophe which affects residents of the United States equally. While earthquakes appear to be much more common and devastating in states like California, states like Indiana and Ohio do not usually encounter earthquakes. There is theoretically no sense for an insurance company to provide an earthquake policy to affect the premiums of residents who will possibly never encounter one.
What insurance companies do to make this coverage available is provide a separate rider, or policy, specifically for earthquake coverage. The cost of earthquake coverage can range depending upon what portion of the United States that you live in. If you are a resident of a state that is occasionally hit by earthquakes, the separate coverage is probably worthwhile.
2. Flood Insurance Is Not Standard
Another one of the natural disasters not commonly covered by a standard renter’s insurance policy is flood coverage. Again, floods are not something that is extremely prevalent in all portions of the United States. A coastal resident in Florida will be more likely to encounter a severe flood than an inland resident of Missouri; unless the area is deemed to be a flood plane.
A flood plane is an area in which the state or local county representatives have deemed a particular town or neighborhood to be located in an area that experiences tremendous amounts of flooding when there is excessive and continuous rainfall. This is also determined by the pitch of the land and how likely it is to flood.
Most mortgage lenders, condominium associations and rental landlords will all require that an owner or renter retain flood insurance as a condition of purchasing the property or renting the property when it is located in a flood plane. Having flood insurance insures that the renter’s personal belongings and portions of the apartment unit are covered in the event of a flood.
Because not all renters will find themselves living in a flood plane, it is not standard practice for an insurance company to include flood insurance. However, this type of insurance can also be found on a separate rider for the benefit of the renter.
3. Hurricanes and Wind Damage Are Not Covered
In addition to earthquakes and floods, hurricanes and wind damage are not usually covered on a standard renter’s policy. Whereas living in a coastal area can certainly increase the likelihood of a hurricane, severe wind damage can happen anywhere when there is a significant and damaging storm at hand.
Even if hurricanes are not a concern in the location for which you live, you should still consider the possibility of wind damage to things like the bedroom windows and patio windows. Severe winds can certainly kick up enough speed to send flying objects through the windows; shattering windows and harming anyone in their way. Your landlord will not be responsible for this damage, nor the aspect of personal harm, so it is worth at least considering coverage for wind damage.