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Renters Insurance Basics

Do your rent your home or apartment? Give renter's insurance as much thought as you do to your car. A typical policy will protect your personal items, temporary housing, and liability protection. If you have an income of any type and personal belongings, you need to have a renters policy in force. Let us help you choose a policy that suits your needs.

Your landlord's fire insurance will protect his building, but not your personal property. If there was a fire in your apartment, will you have enough money to get immediate housing? Do you have the funds available to replace all your clothes, tv, and other personal property? What if someone trips and falls or injures themselves in your home? Will you be able to hire an attorney? These are the types of things that your renters insurance policy would cover.

The typical policy will include personal property coverage and living expenses, it will also cover your liability or damage you cause to others or their property. For example, the pizza boy comes over and trips on your doorstep. That doorstep is your responsibility, and he decides to get a lawyer and sue you! Your policy will help his medical expenses and a lawyer for you.

When you choose your policy, consider these things:

Amount of Personal Property Coverage: This is a determining factor in the price of your policy. If you could add up the value of all your personal property, this will help you determine the amount of coverage.

Your Deductible: The deductible is just like on an auto policy. This is the amount of a loss you must pay before the insurance pays out. Liability coverage is not subject to a deductible. The higher the deductible is, the lower your premium will be.

Actual Cash Value vs. Replacement Cost: When the insurance company comes to reimburse you for your burned down couch and TV how much they give you will be determined by one of these two methods. The standard policy will pay you ACV, which is the value of the property at the time of loss. ACV takes into account depreciation. Your 5 year old couch is not worth as much as it is to go buy a new one. If you get replacement cost coverage, you will get money for an actual replacement. For example, your 5 year tv will be replaced with as much money as it would cost for you to purchase a new comparable television. Some items that are stolen much more such as jewelry and guns, will have limited coverage. We include replacement cost as an option on all of our quotes.

Rental Location and Prior Claims: To some extent the area where you live will affect your premium. If you have a history of claims, you may not receive some discounts.

Whether you feel your personal property is worth enough to insure or not, liability coverage is well worth the cost of purchasing renter's insurance. Let us give you a detailed quote today.

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