1. Renters Insurance covers your personal property
Many renters are shocked to find out that their landlord’s insurance policy does not protect them from damage to personal
property inside their apartment. Example: A pipe bursts in the master bathroom and water destroys your brand new bedroom furniture.
Unfortunately, your furniture is not covered by your landlord’s policy and if you don’t have renters insurance
you are out of luck. That's why all renters should get renters insurance. Policies vary,
but many cover direct physical loss to personal property if it is damaged by:
- Fire
- Lightning
- Windstorm
- Hail
- Riot or civil commotion
- Smoke
- Vandalism or malicious mischief
- Theft
- Falling objects
- Weight of ice, snow or sleet
- Accidental discharge or overflow of water or steam
- Sudden accidental tearing, cracking
or burning of certain appliances or water heating systems
- Freezing of certain systems or appliances
- Sudden and accidental damage from artificially generated electric
current
- Volcanic
eruption
2.
Renters Insurance covers additional living expenses
If your apartment becomes unlivable due to a fire, explosion,
excessive water damage or for any other reason that is covered by your policy, renter's insurance will cover your "additional
living expenses." Generally, that means paying for you to live somewhere else, such as another apartment that is priced
similarly to your current place. This coverage has a limit of about 30% to 40% of the total value of the policy. So, if you're
insured for $100,000, your "additional living expenses" limit will be $30,000 or $40,000, depending on your individual
policy.
3. Renters Insurance provides liability protection
Liability protection is also standard with most renter's policies. This means that if someone in your apartment slips
and falls, you're covered for any costs, up to your liability limit. And if this person should choose to sue you, you're
covered for what they win in a court judgment up to your policy's limit, along with legal expenses.
How much will Renters Insurance cost you?
Just
like any other insurance policy, your premium depends on a number of factors: where you live, your deductible, your insurance
company and if you need any additional coverage. However, if you don't need any extra coverage for expensive jewelry you
will probably pay between $15 to $25 per month. That will get you about $25,000 to $35,000 worth of coverage for your personal
possessions and somewhere between $100,000 and $300,000 worth of liability protection.
If you would like to receive more information about other topics in the insurance industry, please
let us know. We would be happy to include additional articles in our quarterly newsletter or on our website. Contact Leigh-Ann
Webster with your requests. She can be emailed at leighann@websteragency.com.
Please feel free to contact us:
Ph: 619.563.0130
Fx: 619.563.8848
License #: 0726701
Info@websteragency.com
