Why do I need renters insurance?
Just because your landlord has coverage doesn’t necessarily mean that you do. In most cases, your landlord’s insurance policy covers only structural damage to the building itself. If the structure goes up in flames, your landlord’s coverage would include only repairs to the building, leaving you no reimbursement you for your possessions. Renter’s insurance protects your possessions in case of a covered loss from fire, smoke, lightning, theft and vandalism. It also extends beyond on-premise theft and hazards, covering property that is stolen from your car, or becomes lost or damaged anywhere you happen to be.
What do you think your belongings are worth? Conducting a thorough home inventory list might be an eye-opening experience. The value of your furniture, DVD collection, clothing, books, and moveable appliances can really add up quickly. Without coverage, replacing these items could prove to be a real financial hardship. With renters insurance, you know that your belongings are covered and secured.
If you happen to have valuables like expensive jewelry or collectibles, an endorsement to a renters insurance policy can add to the policy’s provisions. This means that in the event of a covered loss, the amount of insurance is enough to cover the repair and replacement or cash reimbursement for the item. Even your expensive camera equipment or wedding ring can be covered, too. Price is not a concern.
Renter’s insurance provides protection against both property loss and liability (in the event that you cause injury or property damage). To learn more about what that means, we’ve covered some basics about each.
Renter’s insurance covers your possessions against damages for fire, smoke, lightning, vandalism, theft and water damage (but not flooding)— just to name a few.
Property protection also extends beyond on-premise theft and hazards, covering property that is stolen from your car, or lost or damaged anywhere you happen to be.
In addition to protecting your personal property, renters insurance also protects you in the event that you are responsible for injury or property damage to others. This means you’ll likely be protected if someone slips and sprains their ankle at your annual birthday bash.
Liability also provides coverage for legal defense costs and judgments in a lawsuit, whether the incident occurred within your rented residence, or elsewhere.
There are two personal property coverage options to choose from: replacement cost value or actual cash value. We recommend insuring your personal property for its replacement cost value. Here’s an example to illustrate the difference:
The furniture you bought a few years ago for $650 is now worth only $100, but today costs $900 to replace. With an actual cash value policy, you would get reimbursed the current depreciated cost minus your deductible. However, if you have replacement cost for your personal property, you would collect the full cost to replace the furniture, less your deductible.
The longer you own your belongings, the less value they hold. Replacement cost value ensures that you can replace yesterday’s purchases at today’s prices.
Is Coverage Affordable?
Good question. Because renter’s insurance covers only the value of your belongings, not the building itself, the premium is relatively inexpensive. For about the same cost as going to the movies once a month, you can gain peace of mind knowing that you are covered and prepared for life’s unexpected mishaps.