By
RCI Insurance Group
What
you’ll discover in this report:
Surprising
secrets about what’s covered
in a standard Renter’s Policy!
The
most dangerous myth about renters insurance
What
to do before you ever have a claim
Protecting
your jewelry, art, computer equipment and other
valuables that may
not be covered!
Insurance
jargon demystified!
What are you really getting?
Find out here...
Busting
the Myths about Renters Insurance
It
is one of the most commonly repeated myths about
insurance. Renters don’t need insurance because their
landlord’s policy provides coverage for the renters’
property.
No,
it doesn’t. Further, if someone slips and falls in
your apartment or rented home, your landlord’s
insurance usually won’t provide any coverage for you
if you are sued.
Renters
insurance is basically like homeowners coverage without
coverage for the structure.
*
Note. Renters
insurance provides coverage for your possessions and for
liability if someone injured while on your premises sues
you. Renters insurance also covers any of your
possessions when they are away from your residence,
including in your car.
In
addition, renters policies provide what are called
additional living expenses. If some catastrophe covered
by the policy -- fire, bursting pipes -- makes the place
you are renting uninhabitable, the policy will pay some
of the costs you incur to live somewhere else while the
residence is being repaired.
The
coverage is usually limited to either a specific period
of time, say 12 months, or what the insurance company
considers a “reasonable length of time.” Also, there
is a cap on the amount of additional living expenses the
insurer will pay, usually a percentage of the total
liability limits.
Like
homeowners insurance, renters policies do not cover
damage or losses resulting from flooding, landslide or
earthquake -- although it is possible to buy coverage
for these risks separately.
Like
homeowners insurance, there are two options for covering
your possessions:
§
Actual cash value, which is the
replacement cost of an item minus depreciation.
§
Replacement, which
allows you to buy a new item to replace the one lost,
stolen or damaged, no matter how old that item is.
*
Note. Because
replacement cost is better coverage, it costs more.
Usually about 10% to 15% more.
Speaking
of cost, renters insurance is fairly cheap when compared
with other personal insurance policies. Usually, you can
get a decent policy for about $200 a year, depending on
where you live. If you choose higher limits for your
personal property and liability coverage, you could pay as
much as $400 a year.
The
policy has dollar limits on certain types of items. 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 an
endorsement, or “floater,” to the basic policy.
Like
homeowners insurance, renters coverage has a deductible --
the amount you will pay before insurance kicks in. The
higher the deductible, the less your policy will cost.
You
probably should have the same liability limits on your
renters policy as you do on your auto insurance policy.
Like your auto policy, you want to make sure your renters
insurance will cover all your assets if you are sued.
If
you are renting with a roommate or roommates, it’s
probably best to include all your roommates on the policy.
In addition, if you are living and renting with a
significant other, many insurance companies will allow you
to obtain joint coverage, just as if you were married.
If You Rent: How to Keep Track of What You Own...
*
Tip. Like homeowners, you as a renter should have a written and
visual inventory of all of your possessions. For items of
significant value, you should write down the model
numbers, serial numbers, date of purchase and price. Make
a written copy of your inventory and keep it at another
location, along with your photographs and/or video of the
items. A safe deposit box is a good place to keep such
records.
*
Note. If
one of your “possessions” is a dog, you may find it
more difficult to get coverage, particularly if that dog
is a Rottweiler, Pit Bull or Doberman.
*
Tip. Finally, remember that many insurance companies give
discounts to those who have multiple policies with a given
insurer. Shop around, or have your agent shop around, for
insurance companies that have the best rates, discounts,
etc., for renters and auto insurance if both are placed
with the same company.
Be
a smart consumer...but don’t try to be your “own
agent.” Protection
for you and your family requires constantly
vigilance...and a partnership between you and your
professional agent.
For the latest information on how to save money
AND get the best protection for yourself and the people
you care most about
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