What is Renters’ Insurance?
Renters’ insurance is very similar to home insurance except that renters’ insurance does not cover the dwelling–that’s your landlord’s job. Renters’ insurance does protect your personal belongs from things such as fire or theft. You will also have coverage and protection for accidents that may occur in your home.
Why Do I Need Renters’ Insurance?
It’s important to know that your landlord’s insurance coverage for the dwelling you live in does not cover your personal belongings. For example, if your apartment catches on fire, your landlord would receive compensation for the loss of the building. If you have renters’ insurance you would receive compensation for your personal possessions, like furniture, clothing and household items, that were damaged due to the fire. Some renters’ insurance policies will also pay your living expenses if you are displaced from your rental.
What Additional Coverage Can I Buy?
As mentioned above, your renters’ insurance policy will cover your personal property as well as liability from an accident in your home. You can choose to add additional coverage. Common options that can be added to a renters’ insurance coverage include:
Medical Payments coverage that will pay the medical costs for a non-family member who is injured on your property.
Scheduled Personal Property Floater which covers specific items with a high value such as jewelry or art.
What’s the Difference Between “Actual Cash Value” and “Replacement Cost” Coverage?
If you file a claim for the loss of personal property and your policy is an actual cash value policy, the amount you receive will be the cost of the property minus depreciation. If your policy gives you replacement cost coverage you will be reimbursed for the full value to replace the item. You will pay more for a replacement cost than for actual cash value. We can help you determine which option is best based upon the items you are insuring in your renters’ insurance policy.
How much coverage do you need?
When you purchase renters’ insurance you should think about how much all of your personal possessions are worth. In other words, if all of the personal belongings in your home were ruined by fire or stolen by a thief, how much would it cost to replace everything? We can walk you through estimating the value of your property and help you determine the right amount of renters’ insurance you need to buy.
You may not know it, but your home insurance typically does not protect you from flooding. The National Flood Insurance Program (NFIP) reports that 25% of the claims they receive come from areas that have a low to moderate risk of flooding. Even though you live in the desert, flooding can be an issue. There is usually a 30 day wait period for flood insurance to go into effect. We are happy to discuss flood insurance options that make the most sense for you and your home.