How to Protect You and Your Family If You Rent
I don't think it's so much that Renters don't think they need Renters insurance.
I think most people have never even heard of renters insurance.
Even if they have, most renters think they don't need it - for a variety of reasons: It's too expensive, my landlord already has that, or I don't own anything worth insuring.
Let's start with the first one.
What does renters insurance cost? Renters insurance is the most inexpensive insurance you can buy.
You typical policy runs about $150 a year (about $12.
50 per month), depending on how much personal property you are insuring.
If you choose higher limits for your personal property and liability coverage, you could pay as much as $350 a year.
Most insurance companies give multi-policy discounts to people who have auto and renters with them.
I know first-hand that many people can get substantially reduced rates by using these kinds of discounts.
Some companies will almost "pay you" to take one of these policies if you already have your auto insurance with them.
The second misconception is "Landlords Already Cover Me For That".
The truth is landlords don't have any insurance to protect you.
Landlords have insurance policies designed to protect them (the structure and anything they own that's in the apartment or home like dishwashers, refrigerators and microwaves).
No one can legally insure property that doesn't belong to them.
The third misconception is "I Don't Have Anything Worth Insuring".
If you have anything at all, and a fire happened in your home or apartment last night, how much do you think it would cost to replace the things you do have? Would it be easy for you to do? Difficult? Take a really long time? If you had to go out right now and buy everything all over again that's in your apartment or your home - today - could you do it? All the toothbrushes, clothes, shoes, laundry detergent, kitchen utensils - all the stuff you own? Renters insurance provides coverage for all this stuff you've accumulated over a long period of time.
Renters insurance also covers any of your stuff when it's away from your apartment or home up to 10% of the total coverage limit you have.
If you've ever had anything stolen from your car, you know your car policy doesn't cover your stuff in the car.
Renters insurance does.
Renters policies do not cover floods, landslides or earthquakes -- although you can buy coverage for these risks separately.
What comes in a renters policy? Renters insurance has 2 main coverages: Personal Property and Liability insurance.
Your Personal Property - It covers anything you own.
The best way to think about this is to rip the roof off the apartment or home, turn it upside-down and shake it.
Anything that falls out that belongs to you would be in this category.
Toothbrushes, couches, TV's computers, dishes, etc...
If you have a roommate, it's important to understand that only your belongings are covered by your policy.
You cannot legally insure property that does not belong to you, so your roommate would need a policy of their own - unless they are your "resident relatives".
If they are both related to you and living with you, check your policy definitions to see if their property is covered under your policy, or ask your agent.
Liability Coverage - If you are sued due to an accident at your apartment or home that was your fault, your liability insurance pays for the medical bills or property damage that's your fault.
Slip and falls are the most common claim to have paid from liability insurance.
Your liability insurance works together with other policies you have if you are ever sued for hurting or killing anyone in a car wreck, or if anyone is hurt badly at your apartment or home and you are at fault.
Making sure you have a good liability shield against lawsuits is a critical variable when determining your limits.
If your shield against lawsuits is minimal, this is a great place to find a coverage cushion for your liability.
How Do They Value My Personal Property After a Claim? Replacement Cost and Actual Cash Value There are two options for valuing your personal property after a claim with any insurance policy: Replacement Cost is simple.
It values your personal property at it's cost today.
This would allow you to buy a new item to replace the one lost, stolen or damaged, no matter how old that item is.
Actual cash value, which is the replacement cost of an item minus depreciation.
For example, an old pair of tennis shoes would get you $5 to $10 depending on the wear and age of the tennis shoes Because replacement cost values items you own at a substantially higher value when you file a claim, it costs more.
Inbuilt Limits - All personal property policies have limits on certain items when it comes to covering them against theft.
For example, there is usually a $1,000 limit for jewelry and anywhere from a $3,000 to $10,000 limit for computer equipment.
If you want higher limits, you can purchase them through an endorsement (change to the basic policy).
How to Maximize the Benefit on a Claim BEFORE it happens.
When you file a claim, the insurance company will only pay you once you've created a written inventory of all of your possessions.
I know.
This sounds like work, but it doesn't have to be.
At least not tight now.
If you just get out your digital camera and open up all the door and drawers, and take pictures of everything you own - store them on the web, or some other place away from your residence - you can always go back and look at the pictures later when you have to create that list.
The reason I bring this up is simple: Most people cannot tell you what is in their living room right now - at least not everything.
To maximize your claim, you'll need a comprehensive list of all the items that were damaged, stolen or destroyed.
For items of substantial value, you should let your agent know about all of them.
They will help you schedule those items on your policy, so if they are ever stolen there won't be a hassle and they won't try to haggle with you on the value of those times.
If you have your agent "schedule" those items and they are stolen, it will be really easy to successfully file a claim and get a settlement from your insurance company that is pre-agreed upon by you and the insurer.
Call your agent and talk to them right now about how Renters insurance can protect you.
All the Best! Erik Wells Erik Wells All American Insurance Agencies 505-896-7660
I think most people have never even heard of renters insurance.
Even if they have, most renters think they don't need it - for a variety of reasons: It's too expensive, my landlord already has that, or I don't own anything worth insuring.
Let's start with the first one.
What does renters insurance cost? Renters insurance is the most inexpensive insurance you can buy.
You typical policy runs about $150 a year (about $12.
50 per month), depending on how much personal property you are insuring.
If you choose higher limits for your personal property and liability coverage, you could pay as much as $350 a year.
Most insurance companies give multi-policy discounts to people who have auto and renters with them.
I know first-hand that many people can get substantially reduced rates by using these kinds of discounts.
Some companies will almost "pay you" to take one of these policies if you already have your auto insurance with them.
The second misconception is "Landlords Already Cover Me For That".
The truth is landlords don't have any insurance to protect you.
Landlords have insurance policies designed to protect them (the structure and anything they own that's in the apartment or home like dishwashers, refrigerators and microwaves).
No one can legally insure property that doesn't belong to them.
The third misconception is "I Don't Have Anything Worth Insuring".
If you have anything at all, and a fire happened in your home or apartment last night, how much do you think it would cost to replace the things you do have? Would it be easy for you to do? Difficult? Take a really long time? If you had to go out right now and buy everything all over again that's in your apartment or your home - today - could you do it? All the toothbrushes, clothes, shoes, laundry detergent, kitchen utensils - all the stuff you own? Renters insurance provides coverage for all this stuff you've accumulated over a long period of time.
Renters insurance also covers any of your stuff when it's away from your apartment or home up to 10% of the total coverage limit you have.
If you've ever had anything stolen from your car, you know your car policy doesn't cover your stuff in the car.
Renters insurance does.
Renters policies do not cover floods, landslides or earthquakes -- although you can buy coverage for these risks separately.
What comes in a renters policy? Renters insurance has 2 main coverages: Personal Property and Liability insurance.
Your Personal Property - It covers anything you own.
The best way to think about this is to rip the roof off the apartment or home, turn it upside-down and shake it.
Anything that falls out that belongs to you would be in this category.
Toothbrushes, couches, TV's computers, dishes, etc...
If you have a roommate, it's important to understand that only your belongings are covered by your policy.
You cannot legally insure property that does not belong to you, so your roommate would need a policy of their own - unless they are your "resident relatives".
If they are both related to you and living with you, check your policy definitions to see if their property is covered under your policy, or ask your agent.
Liability Coverage - If you are sued due to an accident at your apartment or home that was your fault, your liability insurance pays for the medical bills or property damage that's your fault.
Slip and falls are the most common claim to have paid from liability insurance.
Your liability insurance works together with other policies you have if you are ever sued for hurting or killing anyone in a car wreck, or if anyone is hurt badly at your apartment or home and you are at fault.
Making sure you have a good liability shield against lawsuits is a critical variable when determining your limits.
If your shield against lawsuits is minimal, this is a great place to find a coverage cushion for your liability.
How Do They Value My Personal Property After a Claim? Replacement Cost and Actual Cash Value There are two options for valuing your personal property after a claim with any insurance policy: Replacement Cost is simple.
It values your personal property at it's cost today.
This would allow you to buy a new item to replace the one lost, stolen or damaged, no matter how old that item is.
Actual cash value, which is the replacement cost of an item minus depreciation.
For example, an old pair of tennis shoes would get you $5 to $10 depending on the wear and age of the tennis shoes Because replacement cost values items you own at a substantially higher value when you file a claim, it costs more.
Inbuilt Limits - All personal property policies have limits on certain items when it comes to covering them against theft.
For example, there is usually a $1,000 limit for jewelry and anywhere from a $3,000 to $10,000 limit for computer equipment.
If you want higher limits, you can purchase them through an endorsement (change to the basic policy).
How to Maximize the Benefit on a Claim BEFORE it happens.
When you file a claim, the insurance company will only pay you once you've created a written inventory of all of your possessions.
I know.
This sounds like work, but it doesn't have to be.
At least not tight now.
If you just get out your digital camera and open up all the door and drawers, and take pictures of everything you own - store them on the web, or some other place away from your residence - you can always go back and look at the pictures later when you have to create that list.
The reason I bring this up is simple: Most people cannot tell you what is in their living room right now - at least not everything.
To maximize your claim, you'll need a comprehensive list of all the items that were damaged, stolen or destroyed.
For items of substantial value, you should let your agent know about all of them.
They will help you schedule those items on your policy, so if they are ever stolen there won't be a hassle and they won't try to haggle with you on the value of those times.
If you have your agent "schedule" those items and they are stolen, it will be really easy to successfully file a claim and get a settlement from your insurance company that is pre-agreed upon by you and the insurer.
Call your agent and talk to them right now about how Renters insurance can protect you.
All the Best! Erik Wells Erik Wells All American Insurance Agencies 505-896-7660
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