Wisconsin, Sheboygan, August 15,2024: Many of us live in rentals and buy rental insurance to mitigate our losses in case something untoward or terrible happens to our living space or workplace, like a fire or a break-in. Renters insurance offers a safety net in such situations, covering losses and other unexpected costs. While many rental properties or landlords require that their tenants purchase a renter’s insurance policy, a lot of renters choose to voluntarily do so for their financial protection and peace of mind.

What Does Renter’s Insurance Cover?

Renter’s insurance, as the name suggests, covers the liability and personal property of tenants. The type of damage that the renter’s insurance may cover varies depending on the type of policy and the provider. In general, you can expect your personal property to be covered by some or all of the following:

• Theft
• Falling objects
• Fire
• Vandalism
• Smoke
• Explosion
• Damage from hot water systems
• Building collapse

In addition to these, your policy may cover your liability if someone’s property is damaged in your apartment due to your negligence. Depending on your policy, it may also cover the medical expenses if someone is injured in your apartment. Bear in mind that not all policies cover business equipment, so don’t be afraid to ask questions to ensure you get the right coverage suited to your needs.

What Kind of Damage Does a Tornado Cause?

Wisconsin residents do not typically think of their state as a hotbed of tornado damage, but our state has unfortunately seen a drastic increase in tornadoes in the last decade. These tornadoes can cause damage to roofs, windows, doors, and siding. They can also cause thousands or even hundreds of thousands of dollars in damage to personal property such as cars parked on the property, trees, shrubs, and landscaping. Beyond the initial impact, the secondary impact from tornado-induced flooding can result in damaged plumbing and heating systems.

How Much Damage Does a Tornado Cause?

In the past decade, Wisconsin has witnessed nearly 300 tornadoes resulting in over 80 million dollars in damage. In 2022 alone, Wisconsin residents experienced over 28 tornadoes, resulting in millions of dollars in damages. Due to climate change, this number is only expected to increase in the years to come.

Does Renter’s Insurance Cover Damage to Rental Property?

Renter’s insurance primarily covers damages to your personal property, such as furniture, electronics, and appliances. However, certain rental policies may cover your personal liability if your property is damaged due to theft, vandalism, or natural disaster.

You may also be compensated if your dwelling or office is so badly damaged due to these incidents that you cannot safely live there. For example, if a tornado takes off your roof, you cannot reasonably expect to safely live there because you are not sheltered from the weather. Similarly, if your apartment floods and dangerous mold grows there, you will risk inhaling the toxic spores if you live there before it has been properly cleaned up.

In these situations, certain renter’s insurance policies may compensate you for the amount of money you pay for a hotel room while your rental is being cleaned up and repaired.

Tornado Coverage

When deciding whether or not to purchase renter’s insurance, the choice is often an easy one for Wisconsin residents who have seen the type of damage that tornadoes and other disasters can cause. Tornadoes not only can destroy the most important parts of your home such as doors and windows, but they can also destroy or misplace valuables like jewelry, art, or furniture. You could stand to lose hundreds of thousands of dollars if a tornado hits your house, but the cost of renter’s insurance usually only ranges between $10 and $20 per month – or even less. Having tornado coverage means that you will not be on your own if you are faced with this level of damage.

Replacement Cost Coverage

Typically, there are two types of renter’s insurance coverage: replacement cost coverage and actual cash value coverage. Both provide different levels of protection for renters’ belongings.

Replacement cost coverage reimburses the policyholder for the full cost of replacing an item with a similar one at today’s market prices, regardless of its depreciation over time. This means that if a covered item is damaged or destroyed, the insurance company will pay for a brand-new replacement without factoring in depreciation, offering more comprehensive protection for the insured’s possessions.

Actual Cash Value Coverage

In contrast to replacement cost coverage, actual cash value coverage takes depreciation into account when calculating the reimbursement for lost or damaged items. Under this coverage, the insurance company will pay the current market value of the item, which may be significantly lower than its original purchase price due to factors like wear and tear, potentially leaving the policyholder with insufficient funds to replace their belongings.

In most situations, replacement cost coverage is preferable to actual cost coverage, but you may want to purchase the latter depending on your specific circumstances. It is important to carefully review both policies to ensure you are getting the best value and that your specific coverage goals are met.

Do I Need Tornado Damage Insurance Coverage In Addition to Renters Insurance?

If you have already purchased a renter’s insurance policy, check to see what your specific policy includes. It is likely that your renter’s insurance policy already covers tornadoes, including damages to the exterior of the house. But here’s a tip: while it probably covers exterior damage, double-check with your insurance provider to ensure coverage for internal damage such as flooding or electrical damage. Most companies don’t cover these damages, but you can pay extra premiums for such protection, or switch insurers if necessary.

When Does Renters Insurance Take Effect?

Renters insurance typically takes effect when you purchase the policy and pay your premium. Once the policy is active, you can expect coverage for your personal belongings and other liabilities outlined in the policy terms and conditions.

Should I File a Tornado Damage Claim?

If you have experienced financial loss due to tornado damage and you have a renter’s insurance policy, you can and should consider filing a tornado damage claim. Here are the steps you’ll need to complete:

• Document the damage caused by the tornado including fallen trees, a torn roof or wall, shattered windows and doors, and flooding. Ideally, you will also have pictures of the apartment dated from when you moved in so that a comparison can be made between the two.
• Notify your insurance provider as soon as possible and follow their directions for filing a claim. Meet all paperwork and filing deadlines.
• Record all communications with the insurance provider, preferably in writing.

If at any point you feel intimidated or misled by your insurance provider, if you feel that they are avoiding you, or if they have denied your claim, consider hiring a tornado damage insurance dispute lawyer to set things right.

How Can a Tornado Damage Insurance Dispute Lawyer Help Me?

When filing your claim, it is important to remember that insurance companies do not want to pay you if they can avoid it. Because of this, many insurance companies may prolong or deny your claim through unethical tactics such as misinterpreting policy provisions or accusing you of falsifying the details of your claim.

When communicating with your renter’s insurance provider, remember to record your interactions and to be careful about how you deliver the details of your claim. If you feel that you have not been given a fair chance, hire a tornado damage insurance dispute lawyer to communicate with the insurance companies on your behalf and represent your interests.

Contact Details:

Website: wallaceinsurancelaw.com

Email: info@wallaceinsurancelaw.com

Address: Wisconsin, Sheboygan