RENTER'S INSURANCE EXPLAINED
In my opinion, Renters insurance is one of the best types of insurance you can obtain. It provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. Because (in most cases) it only covers the value of your belongings and not the building you are living in, the premium on the insurance is relatively inexpensive. You can usually expect to pay in the neighborhood of $15/month, give or take a few dollars.
In all liklihood, your landlord will have homeowners insurance which covers any type of destruction or damage to the home or apartment building you are living in. However, any type of damage that ultimately occurs to your own belongings is not usually covered by your landlord’s insurance.
By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Renters insurance also covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.
It's real easy to think you'll never experience a situation where you'll need renters insurance...the old "it won't happen to me" philosophy. Don't take that chance. In 10 years of being in this business, I've seen several scenario's play themselves out where the tenant was saved by their coverage. These included:
- Six-year old playing with a sparkler in bed, ultimately catching the home on fire ($28,000 damage).- Contractor scam - roofers tore off the roof of a house and skipped town before re-installing. Resulting storms led to severe water damage inside the home.- Thefts, break-in's and burglaries.- Ice storm that left several tenants without heat for half a week. Bursting frozen lines led to damage to personal belongings.- Kids playing with fire in an empty apartment unit, caused the entire building to burn to the ground.There are a couple of types of renters insurance policies that you can purchase:
Actual Cash Value This type of policy will pay to replace your home or possessions minus a deduction for depreciation up to the limit of your policy.
Replacement Cost This type of policy pays the actual cost of replacing your home or possessions (no deduction for depreciation) up to the limit of your policy
Where can you obtain renter's insurance? Generally whoever you have your car insured with is a good start. Make sure when talking with an agent the pro's and con's of the types of renters coverage available to you. It's also a good idea to go through and inventory your belongings. Try doing this once/year. With digital camera's so prevalent, take an hour and photograph those items that are important and valuable. You'll greatly reduce the stress you'll experience should you ever suffer through any situation like those I've seen.
Looking for some quotes? Try clicking on the banner below to see what you can expect to pay for renters insurance.
Rosewood Holdings, LLC
1237 Three Forks Dr. S.
Westerville, OH 43081
614-865-0807
Email: Rosewood Holdings
ROSEWOOD HOLDINGS, LLC
This page was last updated: January 13, 2008
Call us now: 614-865-0807
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