Renter’s Insurance

Most people know that if you own a house, you need homeowner’s insurance.  But, you should also protect your belonging evens if you don’t own your home.  Renter’s insurance protects you and your belongings if you are renting your home. Every renter should have it.

What Does Renter’s Insurance Cover?

  1. Loss of property.  If your property is lost or destroyed, renter’s insurance will cover it.  This includes loss from theft, fire, and/or water damage.  This doesn’t include accidents you cause yourself.  If you drop your phone, don’t expect your renter’s insurance to cover it.
  2. Add a rider for floods.  If you live in an area that is prone to flooding, you will need an additional rider to cover flood damage.  Flood damage is not usually covered by renter’s insurance policies.  If you live in an area that has never been flooded, then you don’t need to add a flood rider. Check your city’s flood map to see if you live in a potential flood area.
  3. Replacement cost or cash value.  Some renter’s insurance policies cover the cost to replace what was lost.  Others will reimburse you the cash value of what was lost.  If your policy only covers cash value and you lose a 20 year old couch, you may not get enough money to replace it.  However, policies that cover replacement value cost generally are more expensive.
  4. Liability.  Renter’s insurance usually cover liability.  For example, if someone falls and breaks an arm in your apartment, your liability will be covered.  Liability for injuries caused by your pets may or may not be covered, so read your policy carefully if you own pets.
  5. Documentation.  Once you’ve chosen a renter’s insurance policy, go around your house and take quick photos or a video of your belongings.  That way, if your belongings are damaged or stolen, you’ll be able to easily show the insurance company what you had.

Renter’s insurance is usually very inexpensive—some policies are as low as $100 for the entire year.  Being uninsured can cause significant financial difficulties for you.  We’ve seen many clients file bankruptcy who have been carrying financial burdens caused by being uninsured.  Protect yourself and your family by maintaining your renter’s insurance coverage.


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