Renters Insurance: The Coverage You Can’t Afford NOT to Have

Rental condo at the beach? We can cover that!

At this time of year, insurance companies are promoting many types of coverage, including homeowners, health, life, and even “fun” policies on fancy new Christmas gifts like motorcycles or RVs.  However, one type of policy that often gets overlooked is renters insurance.

Renters insurance is important for anyone renting a space.  When you rent an apartment, or even a house, the building itself will be insured by the owner, but what about all of your stuff inside? Losing everything you own with no coverage would be devastating, and could potentially ruin the lives of you and your family if you’re currently living in a rental situation.

So, what do you need to know about renters insurance?

Coverage Will Vary

There are two types of renters insurance: Actual Cash Value (ACV) and Replacement Value (RV). Actual Cash Value factors in things such as depreciation and usage of your items, meaning you won’t necessarily get back the amount needed to go out and purchase a new item.  Replacement insurance, on the other hand, essentially pays out the amount you would need to purchase a new replacement of the item lost.  While the premiums on RV are likely higher, it can be worth the extra cost if you are concerned about the supplementation costs of replacing any items lost in the event of a disaster.

Coverage will also vary based on what you own and what is included on the policy.  Certain policies have a “cap” on certain items (most often jewelry, electronics, firearms, etc.) which means they won’t pay over a certain amount to replace them.  You’ll want to make sure you know the details of your own policy.

Make a List, Check It Twice

When you are making an inventory list of your belongings for your insurance company, it is vital that you take the guesswork out, and put the legwork in to determine the cost of the items in your home.  By making a detailed list, you are most likely to have the coverage you need in the event of needing to file a claim.  For example, if you just take a general look around your home and “guess” an amount that you think would be adequate to cover those things, you could be grossly underestimating what you need.  On average, just the belongings in someone’s home are worth around $20,000.  Would you have guessed that much?  If not, you’d be paying a lot of money out of pocket to get your home up and running again.

Also, keep in mind that items with a “cap” on your policy will need additional coverage.  High-end jewelry, antiques and vintage pieces, and any items with a higher than average value will need a specific policy taken out on them.

Once you have your detailed inventory list made, and have used it to determine the coverage you need, make sure it is kept safe.  The best option for storing this is to have it off site with other important papers (such as a storage facility or wherever else you keep things of value) or in a safe/fire box so it would be in good condition and usable in the event of a fire or flood.

Be Prepared

Finally, make sure you know how to file a claim for your renters insurance before you actually need it.  This means having the names and numbers of who you need to call in the event of filing a claim, knowing your policy information (or having it handy) and knowing how to go about filing in the quickest amount of time.  This will mean you can be back up and running again in a short amount of time after a loss, instead of floundering and attempting to get in touch with the right people while you go without your needs items for days on end.

We hope you’ll think about the importance of renters insurance this holiday season.  If you are currently renting and are concerned that you aren’t covered, give us a call!  We are ready to make sure your things and your loved ones are taken care of in any event.