There are many different beliefs when it comes to insuring a rented dwelling. A majority of tenants believe that they are covered under their landlord’s insurance policies. However, this is not the case. According to the Insurance Information Institution, only 37% of renters buy renters insurance. Meanwhile, 97% of homeowners carry home insurance.

Renters insurance is vital to any tenant renting out a place to live. These policies are designed to reimburse policyholders for damages caused by most common threats to tenants. This low-cost policy is very important to a tenant’s overall well-being when a catastrophe occurs.

What does renter’s insurance cover?

renters insuranceWhen you decide to rent a home or apartment instead of buying, renters insurance is a very safe and affordable way to keep your property protected. When getting this protection, it will ensure that damages done to your rented house/property will be covered.

The largest components or premium drivers, of Renters insurance is your limit for Personal Property Coverage. This protects your personal possessions such as furniture, clothing, electronics, etc. It covers these items from fire, theft and other perils. You set this dollar amount, so be sure it is as accurate as possible when creating your quote/policy.

It also includes Personal Liability Coverage. This is one of the most under-rated benefits of getting coverage. This provides coverages for bodily injury and property damage sustained by others for which you or your family members are legally responsible. It pays for the cost of your legal defense team and settlements up to your policy limits. For example, if your child throws a rock through a neighbor’s window or your dog bites the delivery guy, renters (liability) insurance covers the costs that come with those unpredictable events.

Other coverage includes property belonging to others that is damaged, lost or stolen while at your residence. Also, reimbursement for additional living expenses for when if your home becomes unlivable due to a covered event. Medical payments coverage is if someone is injured on your premises and seeks medical attention.  This coverage will pay for medical treatment, regardless of negligence.  Your renter’s insurance, specifically medical payments coverage, would cover the medical expenses as a result of the injury, up to the limits set forth.

You can add optional coverages for less common dangers and to protect your valuable goods. There is no difference between coverage for houses, condos or apartments—there is only one type of rental insurance.

How Does the Reimbursement Work?

Usually there are two types of reimbursement policies:

1.    Replacement Cost Value (RCV) – Pays for the actual cost of replacing your possessions

a)     Typically more expensive. Can add up to 25-40% to the premium, but can easily see a return of 50 cents on the dollar in the event of a claim.
b)    You get brand-new items at current market value.

2.    Actual Cash Values (ACV) – Pays to replaces your belongings at their value at the time of the loss, taking into account the depreciation

a)    If you had a TV that was 2 years old, you will receive reimbursement for the equivalent of a 2-year-old TV.
b)    If you want to buy a new TV, you will have to pay the extra money out of pocket
c)    Generally not worth the premium savings

Where to save on Renters Insurance Quotes?

renters insurance quotesYou can bundle your policies to lower the cost. For example, by bundling your car and renter’s insurance, you will save money. In addition, ask your insurance agent about raising your deductible. By raising your deductible, your monthly premiums will decrease. However, you will have to pay more before you receive money from the insurer.

When you are looking for your rentable home, ask the landlord about the following items—these items can lower your coverage costs.

•    Security System
•    Smoke detectors
•    Deadbolt locks
•    Sprinklers

Endorsements

An endorsement (or rider) is an add-on to a standard renter’s policy. It provides additional coverage benefits to the policyholder at an extra cost. The insured may have additional wants and needs that are not covered by the average policy, but by adding endorsements they can get these items addressed and covered.

Before you purchase your renters’ insurance, think about what you want insured. If the desired coverage isn’t present on your policy, ask your agent about all available options. Endorsements also save you money by eliminating the need to purchase another policy for a specific item or risk.  For example, you can schedule jewelry on a renters’ policy and avoid having to purchase a separate policy just for one ring. Ask your local agent about riders on your policy to make sure all your needs are covered!

What is not covered in these policies?

Here are some examples of what is not covered by a renters’ policy:

•    Flood damage
•    Earthquakes
•    Government Actions
•    Mold and Rust
•    Losses from intentional actions
•    Nuclear hazards

*Please review your policy for a complete list of exclusions.

Get the Coverage You Need

Whether you are a student, young family or a retiree, when you are renting you home renters insurance is a must. You are not covered by the landlord’s policies and when a tragedy hits you will have to pay the money out of pocket to replace your property if you are without renters’ insurance.

Here at Daigle & Travers insurance, we will provide you with the right coverage to make sure your property and your well-being is safe. When partnering with us, we will give you all the necessary information and options you need to make the best choice of insurance company and policy. Give us a call today at (203)-655-6974.