requirements are becoming more and more prevalent among landlords and property management companies. The good news is, basic renters insurance policies are relatively inexpensive to purchase, often around $20 per month, so, obtaining this important coverage won’t make you break the bank. And even though you might be in a somewhat temporary living situation, we know that your possessions are precious to you, and the cost of your personal belongings could add up to more than you think. Doesn’t it make sense to protect them?
If you are new to renters insurance, you likely have some questions. Study up on the questions below and head out to get your renters insurance quote a little more informed.
Why do landlords require renters insurance?
Renters policies help mitigate the threat of a lawsuit by sufficiently protecting the renter’s belongings. These policies reduce the landlord’s responsibility if the property becomes uninhabitable. Most policies will cover relocation and temporary displacement costs.
Doesn't my landlord's policy cover me?
No. Your landlord’s homeowner policy covers the structure of the house. Without renters insurance, your belongings are not protected. Additionally, if someone is hurt while at the property that you are renting, your landlord is not responsible for their damages should they decide to sue, you are. Your renters insurance will cover personal liability, paying medical bills and court costs in these situations.
Will a renters insurance policy cover my roommate?
Anyone covered by the insurance must be named on the policy. Spouses are generally covered under one policy and in some cases, a renters insurance company will allow roommates to be on the same policy. Most often, however, insurance companies require each person on the lease to have their own policy. Your landlord will likely need to see proof of coverage for each person on the lease. Each roommate should create separate home inventories to determine how much coverage they will need.
When I purchase my renters insurance, does that mean everything in my apartment is covered no matter what happens?
No, it does not. As far as coverage of items, there are limits on valuables. There is also an overall policy limit and there are certain items that may require a “floater” (additional coverage) to protect. Additionally, there are certain events that are excluded from most renters insurance policies, such as earthquakes, floods and other natural disasters. These may require an additional policy.
What happens if I need to file a claim?
Locate your home inventory list. If you do not have one, create a list of damaged items and include as much information as possible (model numbers, manufacturer’s name, receipts, and photographs). When you file a claim, you should take pictures of any damage and be prepared to supply them to the insurance company with your claim. You could be assigned an adjuster who will come and review the damage in person to determine a suitable payoff amount.
What’s the difference between Actual Cash Value and Personal Property Replacement Cost?
When you purchase your policy, you have the option of selecting to insure your personal belongings at Actual Cash Value or Personal Property Replacement Cost. Actual Cash Value will pay out the total cost of your lost item at market value with depreciation. This means that you would not receive the amount you originally paid for your item in the event of a loss. Personal Property Replacement Cost will pay you just that, the cost to replace any lost items. There is no depreciation to worry about and these policies typically come with more expensive premiums.
What’s my deductible?
Your deductible is the amount of money you will spend out of pocket before your insurance kicks in. A higher deductible means you will have to spend more cash up front if you suffer a loss. However, higher deductibles usually translate to lower policy premiums, or monthly payments. You should evaluate your financial situation to determine whether it is easier for you to bear the cost of a higher monthly payment or a higher cost in the event of a loss.
So when am I actually going to use my renters insurance?
Tenants use their renters insurance policies more than you might imagine. Water leaks can damage furniture. Theft and burglary do happen. Most renters insurance policies also offer some coverage for your items if you are away from home. For instance, if your camera is stolen out of your vehicle, it should be covered by your renters insurance policy (provided it exceeds the cost of your deductible).
If you live in Florida and want to protect your personal belongings with renters insurance, look for a new quote online. They are free and easy and can help you make a more informed decision about your renters insurance policy. Request a free, no obligation renters insurance quote from American Integrity Insurance today.