The Importance of Renters Insurance
If you live in a rental home or apartment, chances are you don’t have the proper insurance. Despite the fact that rented homes are more likely to be burglarized than owner-occupied properties, nearly 60 percent of renters don’t have a renters policy.
Why does it matter?
“If you rent a house or apartment and think that your landlord is financially responsible when there is a fire, theft or other catastrophe—think again. Your landlord may have insurance to protect the building you are living in, but your landlord’s policy won’t replace your personal possessions or pay for your living expenses while the building is being repaired. The way to protect yourself financially against disasters is to buy a renters insurance policy.
Renters insurance covers your possessions, liability and additional living expenses. Let’s take a look at these three types of protection:
Standard renters insurance protects your personal belongings against damage from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water and other disasters listed in the policy. Floods and earthquakes are not covered.
To decide how much insurance to buy, you need to know the value of all your personal possessions—including furniture, clothing, electronics, appliances, kitchen utensils and even towels and bedding. The easiest way to figure this out is to create a home inventory, a detailed list of all of your personal possessions and their estimated value.
There are two types of renters insurance policies for your possessions:
- Actual Cash Value pays to replace your possessions minus an amount for depreciation (the reduction in the value of items due to age and use) up to the limit of your policy.
- Replacement Cost pays the full cost of replacing your possessions (with no deduction for depreciation), up to the limit of your policy. The price of Replacement Cost coverage is generally about 10 percent more than Actual Cash Value coverage, but can be well worth the additional cost. Note that a standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.
Standard renters insurance policies also provide liability protection in the event you or members of your familiar cause injury to others or damage their property.It also pays for damage your pets cause.If you are sued, the liability portion of a renters policy may pay for both the cost of defending you in court and for court awards, up to the limit of the policy. Liability limits generally start at about $100,000. Your policy may also provide No-Fault Medical coverage. If visitors are injured in your home, regardless of fault, you can submit their medical bills directly to your insurance company. You can generally get $1,000 to $5,000 worth of this coverage. It does not however, pay medical bills for your own family or your pets.
Additional Living Expenses
Many people are pleasantly surprised to learn that Additional Living Expense (ALE) coverage is typically included in a renters insurance policy. If the home or apartment you are renting is damaged or destroyed and you need to live elsewhere while it is being repaired or rebuilt, renters insurance will cover your additional living expenses—namely the difference between your regular living expenses and the additional costs incurred by having to live away from your home, such as hotel bills, temporary rentals, restaurant meals, etc.
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 Insurance Agency, 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.