Renters Insurance
Even if you rent an apartment or home, a
mishap can still cost you money or make you the
target of a lawsuit. Protect yourself and your
property with renters insurance.
When it comes to your clothing, jewelry,
furniture, stereo, TV and other personal
belongings, renting an apartment or house is no
different than owning a home. You could still
face the cost of repairing or replacing these
items because of fire, theft, wind and other
hazards.
Similarly, your exposure to lawsuits isn't
that much different from that of a homeowner.
You could still be held legally responsible for
an accident, whether it happens at your
residence or elsewhere.
Here are some common misconceptions regarding
renter's insurance.
- My landlord's insurance will cover my
personal possessions and liability.
Most landlord's do not provide insurance
that protects you. In fact, many leases
require you to have some form of renters
insurance. You need your own coverage.
- I don't have much stuff and it's not
worth very much.
You may not realize how much they have
invested in their personal belongings. While
you may have picked up used items, if they
were destroyed in a fire, you would have to
buy new ones. Think about it. What would it
cost you to replace just the clothes in your
closet, or your CD collection? Replacing all
of your belongings could cost tens of
thousands of dollars.
- I can't afford renters insurance.
Renters insurance is relatively
inexpensive. The cost averages about $125
annually for a basic policy.
What does renters insurance protect?
Similar to a homeowners policy, your renters
policy will cover your furniture, clothing, TV,
stereo, appliances and other personal property
subject to the policy deductible. Protection is
worldwide -- if your clothing is stolen from
your car while you're on vacation, you're
covered. But this protection is limited to
losses resulting from perils listed in your
policy. Some of the typical perils are fire or
lightning; windstorm or hail; explosion; riot or
civil commotion; aircraft; vehicle damage; smoke
damage; vandalism or malicious mischief; theft;
falling objects; and artificially generated
electrical current.
How much renters insurance do I need?
Take an inventory of your possessions,
listing each item, when you acquired it and the
current replacement cost. Totaling up the
amounts of these items will give you a rough
idea of what your property is worth. Once this
is done, put your inventory in a safe place away
from home -- for example, in a bank safe deposit
box, at work or at a relative’s home. Consider
adding photos or taking a video of your
inventory - they can help if you have a claim.
Something to keep in mind :
Coverage for certain types of property has a
dollar limit. Here is a typical list of the
types of property that may have "special limits"
in a renters policy (these may vary among
insurance companies) :
- Money, bank notes, coins
- Business property (on and off premises)
- Securities, negotiable instruments
- Watercraft, including trailers,
furnishings and equipment
- Trailers (other than boat trailers)
- Jewelry and furs
- Firearms (limitation applies to theft
only)
- Silverware and goldware (limitation
applies to theft only)
If you have this type of property, you may
need special coverage - either an endorsement
or a personal articles policy. Ask us about
these items.
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