Like most types of insurance, renter’s insurance has different options and you need to know which coverage is right for your needs. In this article, you can find the information you need for making the best choice.
Like many renters, you probably assume your possessions are covered by your landlord’s homeowners insurance. Unfortunately, the property owner’s policy only covers the building itself. You’re on your own when it comes to protecting your personal property against damage or loss.
Renter’s insurance may not seem necessary if your belongings aren’t very valuable. But, what if you lost everything you own in a fire or other catastrophe? Could you afford to replace your stuff right away? For many renters, the answer is no.
What Are the Benefits of Renter’s Insurance?
If you’re still unsure about whether you need renter’s insurance, take a look at the following benefits. You will likely see several reasons to get a policy soon.
It’s Surprisingly Affordable
The cost of your renter’s insurance policy will be based on different factors. They include:
- How much coverage you need
- Type of coverage (ACV or RCC)
- The deductible you choose
- Where you live
- Your credit score
- Your insurance claims history
- Local environmental risks
According to quotewizard.com, the average renter’s insurance policy costs about $219 a year. But, keep in mind that this is just an average. The rates vary from state to state and between insurance companies, so they may be higher or lower than this estimate.
It Provides Liability Coverage
Standard Renter’s insurance policies provide liability coverage. The policy compensates you for legal expenses and court judgments up to the limit of the policy if someone is injured in your rented home.
Most policies provide at least $100,000 worth of liability coverage. But, you can pay for higher coverage amounts if needed.
Your Property is Covered When You Travel
Your belongings are covered even if they are in your car while you travel. The items are protected against loss due to theft and other covered losses no matter where you travel.
Covers Additional Living Expenses
If your rented home becomes uninhabitable due to fire or other peril, where would you go? It may be necessary for you to live someplace else temporarily. Your renter’s policy will cover the expenses you incur for housing, food, and more. But, the policy has a cap on how long it will pay these expenses, so check with your insurance company.
Some Landlords Require It
Landlords don’t want to be held responsible for your belongings in the event of a fire or other disaster. So, most rental contracts require renter’s insurance and ask for proof. Also, a landlord’s insurer may require tenants to obtain renter‘s insurance.
Understanding Renter’s Insurance Coverage
You’ll be glad you have renter’s insurance for many reasons. It provides coverage for a surprising assortment of unexpected perils. A standard HO-4 Renter’s policy pays for damages to personal property caused by the following:
- Fire or lightning
- Falling objects
- Theft, vandalism, malicious mischief
- Weight of snow, ice, or sleet
- Windstorm, hail
- Explosion
- Smoke
- Civil commotion or riot
- Damage caused by vehicles or aircraft
- Damage from water or steam caused by plumbing, air conditioning, heating, or sprinkler systems
This is an impressive amount of protection. But a few things are not covered. For instance, renter’s insurance does not include protection from floods or earthquakes. You’ll need to purchase separate coverage for these perils. Also, a standard renter’s policy doesn’t cover losses caused by intentional acts or negligence.
Types of Renter’s Insurance
Similar to homeowners insurance, renter’s insurance provides replacement cost coverage (RCC) or actual cash value coverage (ACV).
- Replacement cost coverage pays to replace your property at current market rates.
- Actual cash value coverage will reimburse you for the value of the property based on age and depreciation. In other words, it pays what the item was worth at the time of the loss.
Even though RCC has higher premiums, the extra cost may be worth it. However, you can save money by bundling your renter’s insurance with car insurance with the same company. Increasing the deductible amount will also lower your premiums.
Affordable Renter’s Insurance at Sandifer Insurance Agency
Sandifer Insurance Agency offers renter’s insurance at the best possible price without sacrificing quality. We work with some of America’s top insurance providers to make sure you get the ideal coverage for your needs.
Sandifer is a family-owned, local agency serving Cheraw, SC, and surrounding areas. For over 40 years, we have guided clients in choosing the right insurance coverage. Whether you need renter’s, homeowners, automobile, farm, commercial, or life insurance, we can help.
It’s important to shop around and compare rates and companies before making an insurance decision. Let us do the work for you. We will be happy to assess your insurance needs and tailor a policy that fits your needs specifically.
Insurance is confusing for most people, so we will take the time to make sure you understand the benefits of renter’s insurance and how the coverage works. Contact us today. You can reach us online or by phone to get a free quote. Or, feel free to stop by our office to speak with a representative in person.
Sources:
- quotewizard.com/ – How Much is Renter’s Insurance?
- bankrate.com/ – HO-4 Insurance