Most people know that homeowners need insurance. Everyone knows that drivers need auto insurance. But what about tenants? How many renters know what steps to take to protect their possessions?

The Basics

Typically, the owner of a rental property will carry insurance on the structure only. This means that in the event of a loss, the belongings of a tenant are not covered. It doesn't matter if the loss is incurred due to a fire, a burglary, or an accident. The tenant's possessions are just not covered.

This is why renters insurance is so important. Typically, tenants underestimate the value of all their possessions. Replacing every item one owns - from clothing, to toiletries, to electronics - can be very expensive. Insurance is an important investment, as it reduces or eliminates these costs.

Typically, the price of this type of insurance is fairly inexpensive. In the event of a loss, the policy is a great value. The premiums paid are almost certainly less than the cost of replacing all belongings.

What Is Covered?

A typical policy protects the holder against losses due to theft, vandalism, fire or smoke, and water damage not due to a flood. A renters policy also provides protection for liability, should a worker or visitor be injured in the apartment. Finally, renters insurance provides coverage for any additional living expenses, should the unit become uninhabitable.

The limit of property coverage selected on the policy should normally be set to cover the value of the insured's possessions. One additional consideration is that there is typically a cap on some items as to how much will be reimbursed such as for electronics, cameras, jewelry, and other named items on the policy. However, a floater (or endorsement) can be purchased for additional coverage. Additionally, careful consideration should be given as to the amount of liability coverage selected.

There are two main types of policies available. A replacement cost policy pays the current value of the lost belongings. An actual cash value policy pays for the replacement cost, less a deduction for depreciation.

Where To Get Your Renters Insurance Quote And Coverage? You're Already There!

It is important to find the right policy for you. Comparing policies can also help you get the best rate possible. At Fox Insurance Agency, we are an independent insurance agency. This means we can present clients with a renters insurance quote from more than one insurer. We shop the marketplace to find the right coverage at the right price.

At Fox, we work with a number of nationally-recognized, highly-regarded insurance companies. We would love to help you find the right policy. We are proud to provide insurance services throughout Oregon and Washington. Contact us today for more information about protecting your assets with renters insurance.

The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.