Renters insurance is one of the most basic forms of property and personal liability protection that every tenant should have. Renters insurance is a property and casualty insurance product that protects the personal belongings of the insured named in the policy, as well as providing some limited umbrella liability coverage.
According to the National Fire Protection Association, in 2007 there were 414,000 residential structure fires in the United States. Of those, 98,500 were apartment building fires. This “boils down” to 270 fires daily. For those that do not carry renters insurance, this represents the potential loss of nearly all their possessions, with no clear way to replace them,
Some common covered renters insurance perils are:
~ Accidental water discharge (sprinkler or broken pipes)
Similar in form and function to a homeowner policy, renter’s insurance is more cost effective because the policy owner is protecting only the personal property contained in the rental property, not the building itself. Renters insurance can also provide a modest personal liability protection.
The property protection provided by Renters Insurance can come in one of two forms: Actual Cash Value Insurance and Replacement Cost Insurance. Actual Cash Value renters insurance only provides coverage for the depreciated value of your possessions. Replacement Cost Renters Insurance fully covers the cost of purchasing the lost or destroyed items in today’s dollars.
Beyond understanding the level of coverage that these provide, it is also important to check with your agent to ensure that if you have any particularly valuable items, such as jewelry or artwork. These items generally require Article Coverage in addition to your basic renters insurance policy.This supplemental insurance coverage will ensure that if your specific article exceeds the maximum value allowed on your basic renters insurance policy, that you will still be properly compensated for your loss.
There are different levels of renters insurance. Coverage can range from $10,000 to $30,000 in property insurance coverage. More than $30,000 in renters insurance coverage requires special attention by your insurance agent and underwriter.
Additional options include supplemental renters insurance that will provide a security deposit/relocation monies in the event that the rental property becomes uninhabitable due to a covered event. This coverage can be invaluable for the renter who does not have two months rent in savings to cover emergencies.
Finally, beyond protection of your personal property, renters insurance can provide other valuable types of insurance protection. Generally, renters insurance policies come with between $100,000 and $300,000 in umbrella liability protection. Depending on your policy, this may cover you both on and off the premises named in your renters insurance policy.
Renters insurance is one of the most often neglected protections. Don’t become a statistic. Talk to one of our agents and get the renters insurance protection you need.