A common
misconception among renters is that they are covered under their landlord's
insurance. Although landlords do carry insurance on the building itself,
they are not responsible for their tenant's personal belongings. So,
if you rent a house or an apartment, you need to consider insurance
protection for your personal property and personal liability.
Understanding
the coverages available will help you make an informed decision when
shopping for a policy, and identify areas where additional insurance
protection may be needed. To get started, choose from the following:
In general,
a renter policy offers protection in the following areas (Hint:
follow along with your policy to identify areas you may want to review
with your agent):
- Personal
Property (Coverage C) - is for your personal property
(sometimes referred to as your personal contents) such as
clothing, furniture and linens. There are certain exclusions and
limitations with this coverage, especially regarding items such
as computers, jewelry, and antiques. You may purchase additional
coverage for these and other items. Consult the "Special Items" drop
down on the left menu for more information.
- Loss of
Use (Coverage D) - if your home becomes uninhabitable
due to a covered claim, this coverage will pay for your additional
living expenses while you are away from your home awaiting repairs
or relocating.
- Personal
Liability (Coverage E) - protects you from liability
claims made by someone injured on your property (other than a
member of your household). If a lawsuit should arise, this coverage
will also help to pay the legal fees associated with your defense.
- Medical
Payments (Coverage F) - helps to pay for the medical
bills of someone who is injured on your property (other than
a member of your household).
The
amount of protection you have in each of these areas may vary depending,
in part, on the level of coverage you selected when you purchased your
policy.
Protection
is not provided for losses caused by:
- Earthquake
- Flood
- Intentional
Loss
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Additional
protection may be purchased for Flood
and Earthquake.
See your local independent agent for further details.
Whether you have a Basic or Broad
tenant policy, you may also want to consider options for additional
protection if needed.
- Replacement
Cost: There are two ways to insure your personal contents: actual
cash value or replacement cost. If your belongings are insured
for "actual cash value" you would receive replacement
cost or market value of an item minus depreciation. (Ex:
If your television was stolen and it originally cost $600 five years
ago, you may only receive a small portion of the $600 as the value
of the television has declined over the five years due to basic
wear and tear.) A "replacement cost" policy,
on the other hand would provide coverage in an amount sufficient
to replace the item(s) at current prices.
- Limitations: Typically a tenant policy restricts, or does not provide, protection
for certain items (computers, jewelry, furs, antiques, etc.).
Additional coverage may be purchased to provide adequate protection
for these and other items. Consult the Special Items drop down on
the left menu for more information.
- Coverages may
also be subject to a deductible
as stated in the policy.
Hint: Increasing your deductible generally reduces your
insurance premium.
