Shopping For Renters Insurance? Here's What You Need To Know!
Did you know that renters insurance is versatile — it can move with you, be tailored to your needs, and can easily be updated to cover new possessions?
Are you one of the more than 81 million Americans that rent a home or apartment in the U.S.? Do you have a laptop? Flat screen TV? Gaming console? Designer clothing or shoe collection? Make sure you are protecting yourself and your belongings with renters insurance. Read on to determine the best coverage for you.
What Does Renters Insurance Cover?
Renters insurance covers theft, many common perils such as fire and liability. Renters insurance generally includes three types of protection:
- Personal Possessions covers the items that you own while they are in your apartment, condo, or other rental home should they be stolen, destroyed or damaged.
- Liability Protection provides protection against lawsuits for bodily injury or property damage done by you, your family member if they are residing with you or even your pets.
- Additional Living Expenses covers hotel bills, temporary rentals, restaurant meals and other expenses due to a covered loss should you be unexpectedly forced from your rental.
Why Do I Need Renters Insurance?
Most landlords have insurance to protect the building, but their policy won’t cover your property or liability concerns. Without this coverage, you are taking on the responsibility of replacing your possessions out of pocket. It’s also important to note that renters insurance isn’t limited to the confines of your apartment. Most renters also carry a “content insurance policy” that covers valuables (TV, laptop, electronics) and items that are in your car.
How Much Renters Insurance Coverage Should I Buy?
The simple answer to how much coverage you need is enough to replace whatever was lost or damaged with new items. These days, insurance companies average that renters have anywhere from $20,000 - $30,000 worth of belongings, but you’ll want to take inventory of what you own. It doesn’t have to be as tedious as it sounds! You can take a room-by-room video of your belongings, download our Home Inventory Checklist, or watch our video on How to Create a Home Inventory.
When buying renters insurance pay attention to “fair market value” vs “replacement value.” Replacement value will cover the items as if purchased brand new today. Fair market value (also sometimes listed as Actual Cash Value), will cover the items for what they are worth now, taking depreciation and usage into account.
Ready To Buy?
When ready to purchase a policy, look for an agent or insurance company who sells renters insurance policies, and who takes the time to answer your questions. Independent agents offer a personalized experience and will be your main contact if you have a claim, accident or other emergency. Don’t forget to ask your agent about discount opportunities — you could save money if you have multiple policies, such as business or car insurance, or if your rental has a security system or smoke detectors.
Remember, renters insurance is versatile — it can move with you, be tailored to your needs, and can easily be updated to cover new possessions. Learn more about Preferred Mutual’s Renters Insurance by visiting our website or contacting your independent agent.
This information has been prepared and is intended for educational purposes only and is not legal advice and/or an authoritative guide.