Did you know that 32% of the people in the US are renters? However, less than half of them purchase renter insurance for their furnishings and personal belongings. But I’m here to tell you why you need it! Renters insurance Oklahoma is a must, for many different reasons. So why do people consistently decide not to purchase it in the first place?
Well, it has a lot to do with the misconception that Oklahoma renters insurance, and renters insurance in general, is too expensive. Most renters don’t believe they own anything valuable enough to justify getting tenants insurance. Others assume that their personal property is somehow covered by the insurance policy their landlord owns. And finally, a few renters aren’t even aware about renters insurance.
First of all, renters insurance Oklahoma City is by far more inexpensive than homeowner policies because with renters insurance you’re only covering your personal property. Second of all, landlord insurance doesn’t cover your personal property, so you will need that additional coverage. And last but not least, today you will be learning all you need to know about renter insurance to understand why it matters.
Table of Contents
What Is Renters Insurance?
Renters insurance, also known as the HO-4 policy, and it offers coverage C, relating to personal property, and coverage D, relating to loss of use. To be eligible, you must be the renter of an apartment, condo, single-family home or mobile home. Yes, renters insurance mobile home is something you can benefit from too!
OK renters insurance can be written on a comprehensive form, which will cover all risks except those that are explicitly excluded, or it can be written only for named perils. The latter is, on average, 20% cheaper because it covers a more limited number of perils. Do keep in mind that if you go with named perils, you need to cover against theft, fire, and water damage because these are primary hazards.
So, do you need renters insurance in OK? Yes, you do! Disaster brings financial hardship to lots of people every year. And the thing about it is that you never know how or when it’s coming. By leaving your possessions uncovered and uninsured, you’re risking not only losing your personal property, but you also won’t have coverage in case someone files a lawsuit for being injured by your possessions.
The Exposures of a Renter: Reasons to Get Renters Insurance Oklahoma City OK
If you don’t have renters insurance Tulsa, you’re setting yourself up for huge loss in case tragedy strikes. If you’re wondering how much is renters insurance in OK, you should know that the standard renters insurance policy offers a minimum of $6,000 worth of coverage for your personal property.
Oklahoma renters insurance in its basic form will include loss of use coverage, which will represent 20% of the personal property coverage amount, personal liability coverage, and medical payments coverage. You can raise the limits of the coverage if you choose to pay in extra premium to get the renters insurance policy to cover your needs fully. It’s also worth noting that renter insurance also provides limited coverage for additions or alterations. Meaning, if you’ve invested in making improvements to your rental property, your tenants insurance will cover that investment.
With renters insurance Tulsa OK and renters insurance Broken Arrow, your most important property exposure will be covered, which is everything you own, from furniture to clothing and everything in between. Another important exposure is legal liability. If a guest or another tenant is injured or their belongings are damaged, they may seek damages on the basis of negligence liability. Renters insurance will cover that as well.
In other words, Oklahoma renters insurance is 100% worth it, and the more additional coverage you invest in, the less you will have to pay out of pocket in case of loss!
Perils Covered by Renters Insurance
Renters insurance in OK covers the following perils: smoke, fire, explosion, theft, vandalism, aircraft, vehicles, falling objects, riot or civil commotion, lighting, damage to appliances by electricity, freezing pipes, collapse caused by the weight of ice, snow, or sleet, bursting of a steam or hot water heating system, leakage of heating system or plumbing, windstorm or hail, and volcanic eruption.
Though there are some exclusions to those covered perils you need to keep in mind. Such as:
- Smoke excludes loss caused by smoke from industrial operations or agricultural smudging.
- Aircraft only includes spacecraft and self-propelled missiles.
- Falling objects excludes loss to property within a building unless the outside wall or roof is damaged by a falling object. It also excludes damage to the falling object itself.
- Collapse excludes cracking, shrinking, settling, expansion, or bulging.
- Windstorm or hail excludes loss to property caused by snow, sleet, rain, dust or sand unless the building that contains the property was damaged by a direct force of hail or wind.
Of course, a renters insurance policy won’t offer coverage for all perils. Among the exceptions are:
- Earth movements, such as shifting, rising, sinking, expansion or contraction of earth, including landslide, earthquake, mudslide, mud flow, erosion, sinkhole, subsidence, and movement resulting from improper site election, compaction, or other external forces.
- Water damage caused by surface water, waves, flood, tidal water, overflow of a body of water, and tsunami. Also including water that seeps or leaks through or puts pressure on a building, driveway, sidewalk, hot stub, spa, swimming pool, etc.
- Power interruption, which refers to power failure or failure of other utility services if it takes place off the premises of the residence.
- Neglect, which refers to failure to use every reasonable means to preserve and save the personal property both at the time and after a loss or endangerment.
- War and losses caused as a direct result of war, whether civil war, undeclared war, rebellion, revolution, insurrection, warlike acts done by the military, as well as property destruction, seizure or use for military purposes.
- Nuclear hazard as a result of nuclear reaction, nuclear radiation, radioactive contamination.
- Intentional loss, referring to actions intended to cause a loss.
- Actions or decisions, referring to failure to act or decide.
- Weather that contributes with a cause or event normally excluded from the policy to produce a loss.
- Planning, construction or maintenance, referring to faulty, inadequate or defective development, planning, siting, etc., design, remodeling, renovations, and more.
The Limits of Renters Insurance in Oklahoma
Renters insurance theft coverage doesn’t apply to certain types of property. To help you understand, here’s a list of what your renters insurance doesn’t cover:
- Aircraft and parts, other than hobby or model aircraft.
- Animals.
- Credit and ATM cards.
- Motor vehicles, except motorized equipment to assist handicapped people or is not subject to motor vehicle registration and you use it for your home, such as a lawn tractor.
- Motor vehicle equipment and accessories, as well as any device used for transmitting, receiving, recording or reproducing sound or pictures.
- Business property.
- Property held as a sample, for sale, or delivery after sale.
- Tenant, roomer and boarder property when they’re not related to you.
- Property insured by other kind of policy, such as your car.
- Property while at any other location that’s owned, rented or occupied by the insured.
- Property while in the custody of services such as cleaners, laundry, tailors, dyer, pressers, etc., except for loss by robbery or burglary.
- Property while in the mail.
The Anatomy of a Renters Insurance Policy
When it comes to the form of a tenants insurance policy, it’s very basic and similar to that of a homeowners insurance policy. You have the Declarations Page, which will open the document, and then you’ll find a Table of Contents with the following:
- Insuring Agreement
- Section I: Property Coverages
- Section II: Liability Coverages
- Property and Liability Conditions
- Policy Definitions
- Optional Coverages
A few of these sections are further looked into later on in the document. For example, in Section II you will find detailed information about liability losses, including what your insurer covers and doesn’t cover, as well as explanations for what constitutes medical payments and personal liability.
It’s worth noting that the Optional Coverages section may not be found in a basic renter insurance policy. But if you need additional coverage such as flood, earthquake, etc., you will need to have information about optional coverage options.
It’s common to find a section called Special Provisions, which pertains to the local laws. For example, you may be mandated by law to have coverage for worker compensation as refers to residence employees. This is true for California, but mandated coverage will vary from state to state.
You are encouraged to read every line of Oklahoma renters insurance thoroughly and take your time. You don’t want to find out later on that a certain coverage is limited or void under specific provisions. Before you purchase anything, make sure you understand the coverage you’re taking and determine if that’s enough.
In the first page of the insurance policy you’ll find the Declarations, which is the section that will spell out the kind of policy you have. This page contains information such as the name of the insured, the address of the insured location, the policy number, period, and the information of your agent, important notices, coverage, options, credits, deductibles, and the total annual premium. In short, the declarations page provides all the essential details of the renters insurance policy, so you want to pay attention to this.
Renters Insurance Misconceptions
When it comes to Oklahoma renters insurance, there are many misconceptions around it. The first most common misunderstanding is believing you don’t own enough property or that the items you own is not valuable enough to worry about covering with a renter insurance policy. This is simply not true.
By the time you’re done with college, you already have enough personal belongings to warrant insurance. And yes, that property may not be worth much because you’re carrying student loan debt, it still has a ton of replacement values. If you make an inventory of everything you own and add up the value, you will find those things are worth quite something. If you lost your things overnight, you wouldn’t be able to replace them out of pocket.
The second most common misconception is believing your landlord’s insurance will cover you and they’re responsible for anything that happens. That’s not the case at all! Landlord insurance covers the building they own, not your personal property. Even if the loss is found to be the fault of the landlord, they won’t pay for the replacement of your personal property.
And if the loss is found to be your fault, you will be liable, which is why liability insurance is another very important reason to get renters insurance. It won’t be your landlord’s responsibility to help you in that case.
The third most common misconception is thinking that insurance is too expensive to afford it. But that’s also not true at all. You will be able to find affordable renters insurance policies that will require low annual payments. Of course, the cost of the renters insurance policy will depend on how much you own. More coverage, means more cost, but it’s still an investment you can afford.
Last but not least, another very common misconception is thinking that you don’t need tenant insurance simply because nothing bad ever happens in your building or neighborhood. Here’s where we tell you it’s a thousand times better to be safe than sorry, so please get an Oklahoma renters insurance quote today!
Renters insurance is a cushion you can fall on in case something unexpected happens, do you really want to deny yourself of that? Renters insurance Oklahoma is a must for many compelling reasons and there are no excuses not to purchase it. Start looking for insurers that will provide the kind of coverage you need to feel confident that your personal property will be safe!
Brian Ward is a licensed property & casualty, life and health insurance agent for a major national insurance company for over 18 years. He is the CEO of Oklahoma Insurance Quotes, home insurance Oklahoma and Burial Insurance For Seniors, funeral insurance.