Geico Renters Insurance: What is Covered

renters-insurance-1If you are in the process of comparing renter’s insurance quotes, you may be interested in learning what property insurance through Geico does and does not cover.

Frequently, tenants assume that they do not have a need for property coverage because they do not actually own the premises that they live in. While this is a common assumption, renters face many of the same risks that property owners face and have a need for coverage.

If you want to pass on the burden of paying for a loss to an insurer, the first step is to learn what is and is not covered by the insurer before you sign a contract and bind coverage with a payment. Read on, and learn what a Geico Renter’s Insurance policy will cover.

Coverage For Your Personal Property

The main reason why you have a need for renter’s insurance is because it will cover your personal property. Personal property is simply defined as any property that you own that is not permanently fixed to the dwelling or to your vehicle. If you buy insurance with Geico, you will have the option to select your own Personal Property coverage limit. You should take an inventory of all of your belongings, from your electronics and furnishings to your dishes and appliances. By doing this, you can ensure that you will have enough property coverage to replace your valuables if the property is totaled by a loss and you need to replace everything that you own.

Considerations to Make in Regards to Personal Property Coverage

Not all insurers have the same terms and conditions when you file a personal property claim. Knowing how personal property will be valued, which limits exist and which perils are covered by the insurer is extremely important. Geico offers you the option to purchase a policy where claims are valued at Actual Cash Value (ACV) or Replacement Cost (RC). If you purchase a basic plan with ACV valuations, you will only receive what your property was worth at the time of the loss. If you add a (RC) rider, which may cost a small amount more, the claims department will issue a check to replace your belongings based on how much it will cost to replace at the current time. This is the much better option.

You should also decide if you would like a named perils policy or an all risk policy. Geico offers an all-risk renter’s insurance policy, which means that all of the perils are covered unless they are specifically excluded in the policy booklet. This gives you more coverage than a named risk policy, where coverage is extremely limited to losses like fire and theft.

Liability Coverage for Protection in the Event of a Lawsuit

You can never predict when an accident might happen where you are deemed to be negligent. If you are playing a sport and injure another party by accident, it is not out of the ordinary for the party to sue you even if the damage was not intentional. Having liability coverage can be extremely helpful in these situations. The liability coverage included in a Geico renter’s policy will cover you for claims that occur on the premises and away from the premises as well. The basic policy comes with $100,000 of coverage, but you can purchase higher limits for an added premium.

Additional Forms of Coverage That are Overlooked

In addition, Geico offers Loss of Use protection. This will provide you with temporary housing if your home is damaged due to a covered loss and you cannot live there while it is being repaired. This coverage has a time limit rather than a monetary limit. Policies provide coverage for legal defense, which can save you a pretty penny when you are facing a lawsuit.

Geico renter’s insurance policies are extremely popular. Those who have car insurance with Geico may be eligible for a multiple policy discount on each plan if they carry more than one type of insurance with the company. Be sure to familiarize yourself with the coverage options and the restrictions before you select any type of property insurance.

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