Renters Insurance

Take a look around your rental (apartment, condo or single family home) – what if the unexpected happened? A fire. Water damage. Could you replace all of your belongings out of your own pocket? Maybe, but it would be expensive. That’s where Renters Insurance comes in. Renters Insurance protects your things in the event of a loss. It can also help cover:

  • The cost of lawsuits
  • Living expenses if you have to move out temporarily
  • Medical bills if you or a visitor is injured

Your landlord may or may not require you to have Renters Insurance, but the bottom line is: if you’re interested in protecting your piece of the world and having peace of mind – it’s worth the investment!

What does Renters Insurance Cover?

Personal Property Coverage (Contents Insurance): Helps pay for the cost of replacing damaged or lost items. It’s important to consider the value of certain items to ensure they are covered sufficiently when determining how much coverage you would need.

The coverage needed will vary based on the personal items you have in your home and could range from $20,000 to $100,000.

Liability Coverage: This can help cover legal costs as well as medical bills for you or a visitor. A seemingly minor accident could come with a big price tag!

Consider this scenario:
A visitor comes to your home and accidentally trips over a pair of shoes in the living room or a spill on the kitchen floor. No big deal, right? Wrong! According to TrustedChoice.com, the average cost of slip and fall accidents exceeds $12,000 and there are approximately 25,000 slip and fall accidents per day in the
United States.

Liability limits are available from $100,000 to $500,000.

Additional Living Expense (ALE): If you are not able to live at your rental while repairs are being made, your Renters Insurance would pay for a hotel and other living expenses such as groceries. Besides lifting a financial burden, ALE can alleviate a lot of stress for you and your family during a difficult time. It also allows you to focus on recovering from a loss without worrying about where to live and how you will afford it.

What’s an Insurance Rider?

Renters Insurance covers the cost of replacing your everyday possessions, however, it comes with limitations on certain items such as:

  • Jewelry
  • Artwork
  • Silverware

An Insurance Rider would provide you with supplementary coverage for specifically listed items and is not subject to your policy deductible.

For example, your standard Renter’s policy offers a limit of $1,500 for loss of theft of jewelry items and that would also be subject to the policy deductible. By adding your more expensive jewelry items to an Insurance Rider, you may pay a little more, but you gain peace of mind knowing those special items are covered.

What is a Policy Deductible?

A policy deductible is the amount that you are willing to pay out of your own pocket if you file a claim for a covered loss. The most common policy deductibles are $500 and $1,000.

For example, if you have a $1,000 deductible and you file a claim for a covered loss and it’s determined it will cost $6,500 to fix the damages or replace your personal contents, you will pay the first $1,000 and your insurance company will pay you the remaining $5,500 to cover the remainder of the costs.

Your policy premium could also be reduced if you choose a higher deductible amount.