Renters Insurance
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What is in a standard renters insurance policy? How does my renters insurance policy protect me? What's the best way to protect my possessions?Most renters never think of insurance until there has been an incident that causes them a loss and they discover they are not covered by insurance carried by their landlord. Fire, theft, storms, roof and plumbing leaks and many other occurrences can damage your personal property. More than one renter has been shocked to learn the landlord is under no obligation to replace or repair property damaged under these conditions. Below are some suggestions designed to help you make an informed decision when it comes to your possessions. First, just what is renters insurance?Renters insurance protects you from many perils (bad things) that can happen to people who rent living places from others. Most policies cover the following:
If you live in an area where flooding, earthquakes, or hurricanes are a possibility, you would need to purchase a separate policy or a rider to protect yourself from these threats. How much coverage do I need?The least amount of coverage for personal property on a renters policy is typically $15,000. Depending on your location, it may be available for as little as $5.00 per week. However, when taking an inventory of your belongings about buying everything new today and you'll find you may want $20,000 or even $25,000 worth of coverage. Which brings us to our next question: Actual Cash Value or Replacement Cost. An "Actual Cash Value" policy will pay you only what your belongings were worth when they were damaged. That means you will be paid for the item at "fair market value" and if you are lucky you can replace it with one in the same condition. On the other hand, a "Replacement Cost" policy will do just that - insure the item is replaced with one that is the same or better. Especially valuable items, like jewelery, electronics, collectibles, etc., will need to be disclosed and may need a separate policy or rider. Ask your agent for details. Most policies also include liability coverage that will cover the costs for injuries that occur to visitors to your home or yourself while at home. Other special provisions may include damage from water beds and fish tanks or other pets. Ask your agent for your paricular situation. If the unit you are renting contains smoke detectors, fire extinguishers, or security alarms, you will likely be eligible for discounts so be sure and list them when discussing your needs with an agent. Most policies will also include a provision for more living expenses. This means if your home becomes unlivable, your insurer will pay for your living expenses in another location. The typical limit for this coverage is 30%-50% of the total value of the policy. However, you will be limited to your insurer's definition of a "reasonable" length of time for rebuilding or relocating, often 12 months. In conclusion...After you move in, take an inventory of your property. If possible, do a "digital walk through" and photograph or make a recording you can store someplace safe, like a fireproof box, in a bank safety deposit box, or some other secure location. If you have a dog, make sure and tell your agent what kind as some providers will not cover certain breeds. Like other insurance, your premium can be affected by the amount of coverage and deductible you choose and the area where you live. One way to lower your premium is to increase your deductible (the amount you pay before the insurance company pays). For example, if you have a fire in your bedroom that causes $5000 damage and you have a $1000 deductible, you would have to pay $1000 and the insurance company would pay the balance. Call us today or use the form below for a no obligation review of your current policy or what coverage you may need for a new one! 562 630 4163. |