A typical renters insurance policy provides three types of coverage: personal property coverage, renters liability insurance, and additional living expenses. Different insurance companies sometimes give different names to these coverage types, but in general, they all function the same way.
Personal property coverage is what most people think of when it comes to renters insurance. This include things like furniture, clothing and shoes, electronics and devices, appliances and kitchen equipment, home goods such as bedding and towels, and most sports and hobby equipment such as bicycles and musical instruments. Certain personal belongings may be excluded from a standard policy if they’re above a certain value. Such as jewelry, artwork, collectibles, and specialized computer or hobby equipment. A policyholder will have the option to add coverage for items that exceed standard coverage limits.
There are two settlement options for your property. Actual cash value (ACV) and replacement cost (RC) coverage. Actual cash value coverage compensates you for what your items are worth in used condition. Your insurance premiums may be lower with ACV. But if your items are stolen and destroyed, you’ll be compensated for worn clothing and bedding, old and depreciated computer equipment, and so on. As a result, your insurance settlement won’t be enough to purchase new replacements. With a RC policy, you may (not always) pay higher premiums, but you’ll be covered for what it costs to replace your possessions with new ones.
Renters liability or personal liability coverage covers the policyholder in case of a lawsuit resulting from incidents originating on the rental property. Such as accidental injuries, injuries from household pets, or accidental damage to a neighbor’s personal property. Your personal liability coverage can usually be increased with an umbrella policy if needed.
Additional Living Expenses
Additional living expenses coverage provides coverage if a covered disaster results in temporary relocation from the rental property. This ensures you are compensated for additional lodging, food, and other living expenses while living somewhere else. Covered disasters generally include smoke, fire, explosions, theft, vandalism, windstorms, lightning, and water damage from internal sources. Water damage from plumbing or intrusion from a neighboring unit, are covered. Common exclusions include earthquakes and floods from weather or other external water sources.
Protect your property, and your renters with renters insurance. To receive a quote please fill out the form below or click here to get our contact information.