Covers the property you own or use, both at home and outside the home subject to conditions and limitations.
Renters insurance provides protection for you and your belongings such as furnishings, clothing and electronics. There are a variety optional coverages and limits you may choose to protect what matters most to you. Most renters policies also include liability coverage, providing protection for certain accidents that may occur within your home or because of your actions.
Protects you from claims of property damage or injury to others which occurs on your property or is caused by you. An often overlooked benefit is that this coverage helps pay for your legal defense in such cases, even if the lawsuit is false or groundless.
Loss of Use
Provides coverage in the event your home is deemed unlivable due to a covered cause. In such a case the policy pays for alternative living arraignments (like a hotel) while your home is being repaired.
If someone is hurt in the home you rent, medical payments will help cover the cost of their medical bills regardless of who’s at fault.
Named vs Open Perils
You can choose if your policy will cover losses due to named perils which is a list of specific causes like fire, lightening and wind or open perils which will provide coverage from any cause with the exception of a few specifically excluded causes such as war or nuclear disaster.
Actual vs Replacement Cost
Actual Cash Value (ACV) provides you the amount an object is worth today, minus depreciation. Replacement Cost Value (RCV) provides the value to replace that item with something similar. For example, a couch that cost $2000 new may only be worth $700 after a few years. ACV would pay $700 for the couch while RCV would pay $2000 for a replacement
High Value Items
It’s worth knowing that standard policies typically impose limits on particular types of property such as jewelry, money and firearms. You do have the option to add additional coverage for high value items such as a wedding rings – just be sure to mention this to your agent or on your application.
If you have roommates renters insurance will not cover their belongings or liability unless they are listed on your policy. Rules vary by state on who you can add to your policy (i.e a friend) so make sure to speak with us to understand your options.
Keep in Mind
While a Renters Policy packages multiple policies into one, it does not cover everything and you may need to explore additional coverages such as:
- Residence Employees – If you have employees such as a nanny, you need to consider workers compensation coverage for them. Some states limit the amount of coverage under a renters policy and additional coverage may be warranted.
- Home Business – If you run a home based business be aware that most renters policies will exclude or limit the amount of coverage for business use and property. For example – a business computer that is destroyed by a lightening strike may not be covered or only partially covered or if a customer visiting your home falls and is injured you may need to pay for the resulting costs (treatment and/or legal) yourself. Fortunately there are options to either add this coverage onto your policy or obtain a standalone policy depending on your needs.