Even if you don't own rare art or expensive jewelry, your personal possessions may be worth the protection of a renters insurance policy. Think about it this way €”every item in your house has a price or value, from furniture, to clothing, to electrical appliances, and kitchen equipment. If you lost such items in a fire, storm, or theft would you be able to comfortably replace them out of pocket?
In this insurance guide for renters, you'll learn how the personal property component of your policy can protect you from financial loss.
Create a Personal Property Inventory
According to the
Insurance Information Institute (III), creating a comprehensive home inventory can give you a better sense of the personal property coverage to buy. It entails coming up with a list of all the personal items you're keeping in your rented house, along with their estimated worth.
After you've estimated the value of all your possessions, you can easily see the magnitude of the financial risk you may be assuming without adequate renters insurance coverage. Your laptop, TV, books, clothing, shoes, and other items may be worth a sum that merits insurance protection.
You'll also want to consider the personal property coverage limit necessary to fully protect yourself when a covered event occurs. This cap is the maximum amount your policy may pay out in compensation for a covered loss. For example, you may want to select a coverage limit that's enough to replace all your possessions if a fire gutted your rented apartment.
Don't forget to work out an appropriate deductible. That's the money you're willing to pay out of pocket before your renters insurance policy starts to pay for a covered claim.
Liability and Living Expenses Coverage Considerations
Living in a rented house comes with liabilities and emergency expenses you may need to cover with renters insurance. Fortunately, besides covering your personal belongings, most standard polices for renters offer the following protections:
1. Property Damage and Bodily Injury Liability
To a reasonable extent, you're legally responsible for the safety of any guests you invite into your rented house. For example, if your friend is injured by slipping and falling on your floor due to a spillage, they could sue you to recover medical costs. Similarly, you may be liable for the cost of fixing a neighbor's expensive rug that your child or pet damaged.
The liability portion of your
renters insurance would cover you in any of the above or similar scenarios. That means paying for your attorney fees and any court-awarded bodily injury or property damage settlement.
However, the compensation amount for a covered liability never exceeds the limit on your renters insurance policy. As such, if you need a higher limit and extended coverage, you may consider getting an umbrella or excess liability policy.
2. Additional Living Expenses
You may suddenly find yourself without a home after your apartment is destroyed by fire, windstorm, or any other covered peril. This may force you to look for a temporary place to stay, such as a hotel. Your renters insurance policy can cover your additional living expenses to help you get by without spending your money on the extra costs.
That's how renters insurance may help cover the cost of replacing personal possessions that are lost or damaged in a covered event. For assistance securing the right
renters insurance policy,
contact Kneller Agency today. We help to find you coverage to suit your needs, apartment, and possessions, all at the right price.
