Homeowners Insurance for Renters

Homeowners Insurance for Renters

A survey conducted by the Independent A survey conducted by the Independent Insurance Agents and Brokers of America Insurance Agents and Brokers of America found that nearly two-thirds of renters do found that nearly two-thirds of renters do not have renters insurancenot have renters insurance

An average two bedroom apartment can An average two bedroom apartment can easily contain personal property that would easily contain personal property that would cost more than $20,000 to replacecost more than $20,000 to replace

Renters Insurance is relatively inexpensive Renters Insurance is relatively inexpensive to ownto own

Renters Insurance

Your landlord or association may have Your landlord or association may have insurance, but it only protects their buildinginsurance, but it only protects their building

Your belongings are not covered under their Your belongings are not covered under their policypolicy

There are several types of coverage’s that There are several types of coverage’s that are important to understandare important to understand

Renters Insurance: Types of Coverage

Liability InsuranceLiability Insurance

• Liability insurance protects you when you are at Liability insurance protects you when you are at fault or being suedfault or being sued

• Provides coverage for bodily injuryProvides coverage for bodily injury

If someone gets hurt in your home your policy If someone gets hurt in your home your policy will cover any medical expenses incurred from will cover any medical expenses incurred from the injurythe injury

• Property damage liability covers any damage Property damage liability covers any damage done to the building and belongings of others in done to the building and belongings of others in the buildingthe building

Renters Insurance

Liability Insurance (continued)Liability Insurance (continued)

• Most policies cover the behavior of household Most policies cover the behavior of household petspets

• Renter is liable for events they cause or which Renter is liable for events they cause or which occur within their homeoccur within their home

• Some events which are caused by a landlord’s Some events which are caused by a landlord’s negligence may be covered by their insurance negligence may be covered by their insurance instead of rentersinstead of renters

Renters Insurance

Loss of Use InsuranceLoss of Use Insurance

• Protects you when your home is not livableProtects you when your home is not livable

Example: if your home is unsafe after a fire, Example: if your home is unsafe after a fire, being repaired, etc…being repaired, etc…

• Most often pays for temporary housingMost often pays for temporary housing

• May pay for additional costs resulting from the May pay for additional costs resulting from the home being “unusable’home being “unusable’

Renters Insurance

Property InsuranceProperty Insurance

Actual Cash Value (ACV) vs. Replacement CostActual Cash Value (ACV) vs. Replacement Cost

• ACV coverage only pays for what the property ACV coverage only pays for what the property was worth at the time of loss, minus your was worth at the time of loss, minus your deductibledeductible

• Replacement cost coverage will pay what it Replacement cost coverage will pay what it actually costs to replace the items you lost, minus actually costs to replace the items you lost, minus your deductibleyour deductible

• You should talk to your agent if you have items You should talk to your agent if you have items that are valuable or irreplaceablethat are valuable or irreplaceable

Renters Insurance

Package PolicyPackage Policy

• Contains two or more types of coverageContains two or more types of coverage

• Most homeowners policies are packages which Most homeowners policies are packages which include property, liability, and loss of useinclude property, liability, and loss of use

Renters Insurance

Take InventoryTake Inventory

To ensure that you are compensated for any To ensure that you are compensated for any belongings you lose in a loss you should inventory belongings you lose in a loss you should inventory

all of your personal belongingsall of your personal belongings

Photograph or videotape each roomPhotograph or videotape each room

Keep receipts for major itemsKeep receipts for major items

Keep documentation in a place other than your Keep documentation in a place other than your homehome