Renters Insurance
Don't underestimate Renters insurance. It may seem small, but it is mighty.
Renters Insurance
You may or may not own the place you live in, but you own everything you brought into it.
People often do not purchase Renters insurance because they think it will cost too much when the opposite is true. For less than a dollar a day, your clothing, furniture, sports equipment, electronics, and, most importantly, YOU will be well protected. Renters insurance will help you to repair or replace your stolen or damaged property. It is not just about coverage for belongings- there is much more to it.
Personal Property In Renters Insurance
Personal Property (Coverage C) – as mentioned earlier, protects your belongings against damage from fire, lightning, hail, windstorm, impact by a vehicle, vandalism, theft anywhere in the world, and more. Keep in mind that coverage is limited to 10% of Coverage C if the loss occurs to the belongings that are not located at the residence premises. A few items have a special limit, like money, rare coins, stamps, and more. So, if you have some very expensive jewelry, art, or other valuables, make sure to schedule them.
Always choose Replacement Cost endorsement, which will help you to recover your lost or damaged property at full value without a deduction for depreciation.
Loss of Use (Coverage D)
Loss of Use (Coverage D), also known as Additional Living Expenses (ALE), will pay the difference between your regular and additional expenses. For example, your apartment was damaged in a fire, and you must temporarily move out while it is being repaired. You stay at the hotel, must eat all your meals out, spend more money on gas and parking, etc. Your usual monthly expense before this was always around $5000. Now you spend a whopping $7000. Loss of Use coverage will pay that $2000 difference.
Personal Liability
Personal Liability (Coverage E) is used to protect you in case somebody sues you for any injuries or damages caused by your actions or negligence. For example, your bathtub overflows and floods the apartment below, damaging their expensive rug and furniture. Your kid hits somebody in the head with a baseball bat at practice…
Medical Payments
Medical payments (Coverage F) is for your guests in case they get hurt at your place and need medical attention. Simply submit their medical bills directly to your insurance company.
Deductible In Renters Policy
Last but not least, part of any insurance is a Deductible. This is the amount you pay before your insurance coverage takes over and applies only to property losses. The higher the Deductible – the lower the price of your insurance premium.
Renters Insurance Tips
There are a few important points to remember:
- Damages related to earthquakes and floods are excluded from all California policies and must be purchased separately.
- You may want to consider adding Identity Fraud Protection- very useful in our day and age.
- Workers’ Compensation coverage is included on all California Renters policies and is for your maid or a babysitter if injured while working for you.
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