an introduction to renter’s insurance presented by insert name: financial education program on...
TRANSCRIPT
An Introduction to Renter’s Insurance
Presented by INSERT NAME:
Financial Education Program on Insurance
Nationwide and the Nationwide frame are federally registered service marks of Nationwide Mutual Insurance Company.
An Introduction to Renter’s Insurance
An Introduction to Renter’s Insurance
RISK: WHAT IS IT?
Risk = the possibility of financial loss
An Introduction to Renter’s Insurance
Why is risk important for insurance?
Risk is what makes you decide whether or not you need insurance.
Risk is what insurance companies measure when determining whether to offer you insurance and how much it will cost.
An Introduction to Renter’s Insurance
Risk Factors for Renters Insurance
Type of home (apartment, town home, high-rise)
Square footage
Number of rooms
Floor level (if in high-rise)
Address (city, state, county)
Pets?
Proximity to fire station and fire hydrant
Business being conducted on premises?
Credit rating of policyholder
Personal property (including furniture, electronics, high value items, etc.)
Special safety features (security, alarms, sprinklers)
Prior insurance history (claims filed, etc.)
Construction type (brick, frame, etc.)
Roof type (shingle, tile, metal, flat, etc)
**Amount of coverage required**
An Introduction to Renter’s Insurance
What is insurance?
Insurance is a legal contract that transfers risk from a policyholder to
an insurance provider.
An Introduction to Renter’s Insurance
Why do you need renter’s insurance?
An Introduction to Renter’s Insurance
The average renter owns over $20,000 in personal property. In the event that
something happens to your property, who will have to replace it?
An Introduction to Renter’s Insurance
You.
An Introduction to Renter’s Insurance
The Components of Basic Renter’s Insurance
An Introduction to Renter’s Insurance
Most renter’s insurance contracts normally include coverage for the
following items, but this can vary by company and state. Check your policy to be sure what is and what is not covered.
What does basic renter’s insurance cover?
An Introduction to Renter’s Insurance
• Personal Property – Coverage for personal items (clothing, furniture, appliances, computers, etc.).
• Loss of Use – Coverage for when an insured has to move out of the home while repairs are made as a result of damage caused by a covered loss.
What does basic renter’s insurance cover?
An Introduction to Renter’s Insurance
Protecting Your Personal Property:
Two Options for Renter’s Insurance
An Introduction to Renter’s Insurance
# 1: Actual Cash Value
Definition: The value of the property lost or damaged at the time of the loss. This method of valuation takes into consideration depreciation based on such factors as:
• Age of the item
• Market value
• Condition of the property at the time of loss or damage.
An Introduction to Renter’s Insurance
#2: Replacement Cost
Definition: The cost of replacing damaged or destroyed property without deduction for depreciation in the value of the property.
An Introduction to Renter’s Insurance
• Liability Insurance – Pays for damages the insured is legally obligated to pay due to bodily injury or property damage.
• Medical Payments – Pays for medical and/or funeral expenses incurred by a person on or off the insured’s property.
What else does basic renter’s insurance cover?
An Introduction to Renter’s Insurance
Perils Covered by Renters Insurance
•Fire and lightning •Windstorm and hail •Explosion •Riot and civil commotion •Impact from aircraft •Impact from vehicles •Smoke •Vandalism and malicious
mischief
•Theft •Falling objects •Weight of ice and snow •Glass breakage•Accidental overflow of water
from plumbing•Accidental electrical damage
to appliances (caused by power surge)
*Depending on where you live, hurricanes or windstorms may or may not be covered. Check with an insurance agent to determine if an extra policy is needed to cover these perils.
An Introduction to Renter’s Insurance
Perils NOT Covered by a Standard Renters Insurance Policy
(You may need to purchase a separate policy!!)
• Flood• Earthquake• Act of War• Nuclear Detonation
*Depending on where you live, hurricanes or windstorms may or may not be covered. Check with an insurance agent to determine if an extra policy is needed to cover these perils.
An Introduction to Renter’s Insurance
ADDITIONAL COVERAGES*
• Jewelry, watches, furs• Guns• Tools• Cameras, camcorders• Silver, gold, pewter
* Coverage for these items is already included in the renters insurance policy up to certain limits. For an additional premium, you can increase the limits of
these coverages to meet your needs.
•Money, coins, securities, deeds
•Watercraft, trailers, equipment, motors
• Computers• Business property
An Introduction to Renter’s Insurance
LIABILITY COVERAGE
• Protects you, your family, and anyone under age 21 in your care
• Protects you against legal claims you are legally obligated to pay for causing bodily injury, sickness, disease or death of others
• Pays the cost of defending a claim against you
• Covers damage to the property of others
An Introduction to Renter’s Insurance
GUEST MEDICAL PAYMENTS
• Pays for necessary medical and funeral expenses*
• Covers first aid expenses of others*
*Limited to certain terms, limitations, and exclusions. Check with an insurance agent to find out more about this coverage.
An Introduction to Renter’s Insurance
STEPS TO PROTECTING YOUR PROPERTY
An Introduction to Renter’s Insurance
Next Steps
1) Take an inventory
2) Compare quotes
3) Select your
coverage
4) Ask about disaster coverage in your area
5) Check for discounts
6) Select a provider and
apply
An Introduction to Renter’s Insurance
Practice Shopping for a Policy
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