Renters Insurance- Coverage for personal possessions
If you rent a house or apartment and experience a fire or other disaster, your landlord’s insurance will only cover the costs of repairing the building. To financially protect yourself you will need to buy renters or tenants insurance.
The big difference is that renters insurance doesn't cover the building or structure of the apartment—that's the landlord's responsibility. The following questions will help you choose the right coverage when you are shopping around for renters insurance or discussing your needs with an insurance professional.
Coverage for your personal property is a key component of renters coverage, protecting you from theft, fire and a host of other unfortunate events.
1. How much insurance should I buy?
Make sure you have enough insurance to replace all of your personal possessions in the event of a burglary, fire or other covered disaster. The easiest way to determine the value of all your personal possessions is to create a home inventory a detailed list of all of your belongings along with their estimated value.
2. Should I choose replacement cost or actual cash value coverage?
Actual cash value policies include a deduction for depreciation (that is, the idea that items lose value over time). Replacement cost coverage is pricier but can be well worth the extra expense if your belongings are damaged or destroyed (think about how much you'd get for your TV used versus how much it would actually cost to replace).
3. What disasters are—and are not—covered?
Renters insurance covers you against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and certain types of water damage (such as from a burst pipe or when the tenant upstairs leaves the water running in the bathtub and floods your apartment).
Like standard homeowners policies, most renters insurance policies do not cover floods or earthquakes. Flood coverage is available from the National Flood Insurance Program and a few private insurers. You can get earthquake insurance as a separate policy or have it added as an endorsement to your renters policy, depending on where you live.
4. What is a “floater” and do I need one?
A floater is a separate policy that provides additional coverage for more costly valuables if they are lost or stolen. If you have expensive jewelry, furs, collectibles, sports equipment or musical instruments, consider adding a floater to your policy to protect against their loss.
5. Am I covered if I am traveling or away from home?
Most renters polices include what is called off-premises coverage, which means belongings that are outside of your home are covered against the same disasters listed in your policy. For example, property stolen from your car or a hotel room while you’re traveling would be protected. Contact Silver Coast Auto Insurance Services to get your renters insurance policy started (888) 823-8682.