Renters Insurance

Suppose you came home from work to find your apartment or home broken into and your new plasma TV stolen. Or suppose there was a fire in your kitchen. You can’t assume your landlord will pay for the damage.

With renters insurance, you’ll be able to replace what’s damaged or stolen.  It covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage from plumbing. However, renters insurance does not cover floods, earthquakes or routine wear and tear. Separate policies are available for this coverage. 

Renters Insurance will cover loss of use, including increases in living expenses due to fire or other insured losses.  If you cannot live in your home due to damage from one of the perils mentioned above, your policy will pay for your temporary lodging away from home while repairs are under way.

Liability coverage protects you from injuries or damages to others caused by you, a member of your family, or pet. Medical payments insurance covers medical expenses to non-family members injured at your home.

Cash Value or Replacement Cost

There are two types of renters policies. Cash value coverage takes into account the age and condition of items at the time of damage or loss. You would be reimbursed for the value of the item minus depreciation. Replacement value pays the cost of buying an item of similar kind or quality today. The price of replacement cost coverage is about 10 percent more but is well worth the extra cost.

Decide How Much Insurance You Need

Add up the cost of everything you would want to replace if it were damaged or stolen. This could also serve as the basis for an inventory that will make filing a claim easier. For an inventory, also record model numbers, dates and places of purchase. Take photographs or make a video of these items and place a copy of the inventory in a safe place away from your home.