If you have decided to be a renter, you should invest in renters insurance, especially if you own expensive personal belongings or regularly entertain guests. To give you some insight into renters insurance, here are three common renters insurance questions and their answers.
1. How Valuable Should My Personal Possessions Be to Warrant Renters Insurance?
The best way to figure out whether or not you need renters insurance coverage is to calculate how much it would cost to replace your personal belongings, particularly those in your rental property. As a rough guide, the average renter in America owns several thousands of dollars’ worth of belongings. If you fall in this bracket, it means your personal belongings are worth much more than the average annual cost of renters insurance coverage.
To get a more accurate number, you can use one of the many home inventory sites and apps to log, price, and track your belongings. Alternatively, if you have receipts for your big-ticket items, you can use a spreadsheet program such as Excel to create an inventory of your possessions. In addition to helping you calculate the value of your items, this information comes in handy when filing a claim. That said, it is essential to note that renters insurance has a liability feature, meaning it covers more than just your personal possessions.
2. How Much of My Personal Possessions Are Covered by Renters Insurance?
A standard renters insurance policy typically covers most of your personal possessions, including, among others, electronics, furniture, and clothing. However, it is essential to note that most renter insurance policies tend to have certain fixed limits on high-value items such as expensive jewelry and art. If you own such an item, check with your insurer to determine if you need additional coverage for such high-value objects. Such additional cover offers an enhanced level of security for high-value items.
3. Can Renters Insurance Extend Beyond My Personal Possessions?
In addition to protecting your personal belongings against named risks, renters insurance coverage also offers liability coverage to help you cover the related costs. Such additional costs include legal costs, like those incurred due to accidental third-party bodily injury or property damage that occurs within your rental property.
Speaking on medical grounds, if your guest suffers a slip and fall injury while using your bathroom, your renters insurance policy can cover the resulting treatments. Hence, you would not necessarily have to pay for such expenses out-of-your-pocket. What’s more, if your guest decides to sue you for the accident, your renters insurance coverage will cover the associated legal costs.
Regarding third-party property damage, your renters insurance will cover any unintentional accident that leads to third-party property damage if you are found liable for the accident.
For example, if you break your neighbor’s window while playing catch in your rental apartment, your policy will pay for the damage. Besides third-party property damage and bodily injury, your policy can also cover your accommodation expenses if you have to vacate your rental property temporarily for reasons such as water damage, fire, or renovations. It is worth noting that some renters insurance policies also cover your personal belongings in your car or storage locker.
These are just some of the common basic questions the answers to which ought to be known before getting renters insurance.
If you need guidance with your renters insurance, contact the experts at Mike Leonard Insurance Agency in Texas. We can connect you with our top insurance carriers, including Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance, to find the coverage you need.