Should
you as a RENTER have insurance?
Unless you are sure your property is covered on another
individuals' (your parent's or spouse) home owners
insurance -- MOST
DEFINITELY YES!
Do not assume that the
landlord’s insurance covers your personal
belongings, because more than likely it does not.
Your landlord probably has insurance that covers the
building only. The landlord’s policy does not cover
your liability to others (some one else’s injury or
damage for which you may be held responsible).
What Does Standard Renters' Insurance Cover?
Renters' insurance covers
personal belongings for their actual cash value at the
time of the loss. However, there is limited coverage for
furs, jewelry, monies, fine arts and other specific
valuables. These special items may be covered under a
special addition to your renters policy or under a
separate policy. The renters policy usually insures your
household contents and personal belongings against losses
from:
- fire and lightning
- falling objects
- vandalism
- riot/civil commotion
- windstorm
- explosion
- weight of snow, ice and
sleet
- vehicles
- smoke
- theft
- aircraft
- volcanic eruption
- sudden and accidental
tearing apart, cracking, burning or bulging of a
steam or hot water system or of appliances for
heating water.
- freezing of plumbing,
heating and air conditioning systems and domestic
appliances.
- accidental discharge,
leaking or overflow of water or steam from within
a plumbing, heating, air conditioning system or
domestic appliances. (“Rising water” is
not covered. Separate flood insurance must be
purchased for this purpose.)
- sudden and accidental
injury from artificially generated currents to
electrical appliances, devices, fixtures, and
wiring.
Additional Living Expenses
Your renters insurance will also
pay for any increase in living expenses when your
residence can not be occupied because of damage caused by
events previously listed. For example the policy would
help in paying for a hotel and food in restaurants while
you are out of the apartment or unit that is being
repaired.
Liability to Others
The liability coverage in a
tenant’s policy applies at home or elsewhere (except
automobile) to injuries or damages caused by you, a
member of your family, or even a pet. It includes
coverage of legal fees in the event you are sued.
Determining Your Insurance Needs
Make a list of all your
belongings, estimate the values of each, and take
pictures of major items. Prepare an extra copy of this
list to keep in a separate place (a close friend,
relative, etc).
Shopping for Renters' Insurance
Once you have estimated the
amount of insurance you need, you are ready to shop for
an insurance policy. Find listings of insurance agencies
by asking friends/relatives and by checking the yellow
pages in the phone book. Your best bet may be to talk
with the company you insure your car with.
Talk with several insurance
companies to obtain the best value and one within your
budget. Take a list and photographs of your belongings
when talking to insurance representatives. Compare the
deductibles and Total Content amount for each insurance
company. In most cases the theft deductible will usually
be higher. The reason is that students are more likely to
be robbed because of the long periods of time their
units are left unoccupied during break periods.
Be sure to ask questions on particular sections about which you are
uncertain. An insurance policy is a legally
binding contract which defines the duties and
responsibilities of both the insurance company and the
consumer. Thus, you want to have complete confidence and
understanding in your renters insurance policy.
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