Renters' Insurance: What You Should Know About the Coverage You Need

Property Coverage

Protection under a standard renters' policy is on an actual cash value basis (the cost to replace with a new, similar item, less depreciation).

Example: Stewart's kitchen catches fire, and his three-year-old refrigerator is destroyed. A new model of the refrigerator costs $750. His insurance company pays him $362, explaining that it's the effect of three years of deteriorating value. Most companies offer coverage on a replacement cost basis if you purchase a separate endorsement.

Theft Limitations

Certain types of property are quite vulnerable to being stolen; therefore, minimal coverage is available for items such as jewelry, furs, gems, gold, silverware, pewterware, money, securities, guns and accessories. Protection can be increased by adding additional coverage to the tenant policy or purchasing a personal article floater policy.

Additional Living Expenses

A typical tenant policy provides a limit equal to 20% of your contents insurance limit. If your contents limit is $15,000, then your additional living expenses limit will be $3,000.

Liability Coverage

Liability insurance covers you for injury you cause to others and for damage to property that belongs to others. The policy also provides for the cost of a lawyer (if necessary) and most court costs. Examples of liability claims include slips and falls, hitting a golfer with your errant hook shot, or a friend breaking her hip when she trips on a skateboard your child left on the stairs.

Complete, broad, affordable protection is available to protect renters. It's a smart move to purchase it!

Do you still have questions about the property that needs special handling? A professional agent at Williams Insurance is waiting to talk to you about your needs!