Renters 101

What is Renters Insurance?

    • Renters insurance is one of the most important types of insurance if you are living paycheck to paycheck
    • Insures the personal property you currently have, even if it is not a lot 

Myths of Renters Insurance

    • Your Landlord Will Pay for Damages
      • Landlord is responsible for the property, not your personal property
      • When the neighbor’s plumbing explodes, landlord replaces the plumbing, but your renter’s insurance would pay for the water damage to your items, or else its OOPs
        • OUT OF POCKETs
    • Renters Insurance Is Too Expensive
      • A basic, comprehensive policy in Los Angeles is about $17.50 a month! Just imagine the premium you can get here in Augusta or anywhere in GA
        • $10,000 Personal Property
        • $100,000 Personal Liability 
          • w/ $250 deductible
      • Way cheaper than replacing individual items
        • The lower the value of your property, the lower the premium

What does renters Insurance Cover?

  • Comprehensive Renters Covers the replacement of your personal property
    • Personal belongings
    • Furniture
    • Electronics
    • Computer equipment
    • Jewelry
    • Clothes
    • Appliances
  • Comprehensive Renters insurance will cover the loss of property (within your policy’s limits) if damaged, destroyed, lost, or stolen in these events
    • Fire & Lightning
    • Wind or Hail
    • Explosions
    • Riots
    • Damage by Aircraft
    • Damage by vehicle (not your own)
    • Smoke damage
    • Vandalism
    • Theft
    • Volcanic eruption
    • Falling objects
    • Weight of snow, ice, sleet
    • Damage from steam-heating/water-heating appliances/systems
    • Leakage or overflow of water or steam
    • Freezing of plumbing, heating, air conditioning
    • Short-circuit damage caused by electrical appliances
  • Covers property even when not in home, laptop stolen on vacation
    • Considered insured property
  • Can protect damages to others
    • Broken plumbing analogy————-

Personal Liability & Medical 

    • covers costs you may be legally responsible for paying if someone is injured in your apartment. 
      • If someone slips
      • falls and is hurt on the premises 
      • dog or cat bites a visitor
    • your policy should contain medical coverage to cover injuries without a lawsuit being involved, and liability, in the event you are sued over a mishap.

Temporary Living Expenses

  • Residence is uninhabitable? 
  • Renters insurance can also cover the cost of a temporary place to live.
  • It will compensate you for everything from 
    • hotel bills
    • cost of food 
      • if it exceeds what you’d normally pay through your grocery budget. 
  • Otherwise known as loss-of-use coverage
    • it’s one benefit of having renter’s insurance until you’re able to move back in (or find a new apartment).

What Renters Insurance Will Not Cover

  • Natural Disasters
    • Flooding
      • Must purchase additional, or separate coverage if you live in a flood zone
    • Earthquakes
    • Sinkholes
  • Property Damaged By Pets
  • Items of HIGH Value
    • Jewelry
    • Art
    • Antiques
    • Vintage Family heirlooms
    • Rare autograph collection

The Insuring company may limit the amount of coverage they provide because it may exceed what they are fiscally able to insure

    • Riders
    • Standalone Policies
      • Jewelry insurance
  • Damages from Terrorism or Nuclear War
  • Other Exceptions

Before Buying Renters Insurance

  • Take Inventory
    • Add up the value of everything you own
  • The average renter owns about $25,000 of personal property
    • Many renters underestimate how many they truly own
  • Shop Around
    • Way your deductible with your premiums
  • Understand how insurance payouts work
    • Named Perils
      • Perils that are named in the policy that are covered
    • All Risk——–
      • All perils are covered unless specified