Renter’s insurance covers property damage or loss caused by theft, fire, vandalism or storms. Losses due to weather-related floods are not covered. In addition, the policy includes liability coverage which protects a tenant if someone gets hurt when visiting the home or apartment.
The cost of renter’s insurance is usually low because, unlike homeowner’s insurance, it only covers personal property and liability, not the structure itself.
Two types of renter’s insurance coverage are available:
- Actual Cash Value: Insurance pays to replace items up to the policy’s limits, minus a deduction for depreciation and deductible.
- Replace Cost: Insurance pays the actual cost of replacing your possessions, regardless of depreciation, up to the limits on the policy minus the deductible.
Consider the value of your possessions versus the cost of insurance. Even a college student can have property worth a few thousand dollars such as, computers, televisions, furniture, jewelry or small appliances.
If you have specific items of high value, you may need to add a rider to your policy which will cover that item specifically.
Call our office to learn more.