Renters Insurance

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
• KnowYourStuff.org
• 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

SOURCES: https://www.policygenius.com/renters-insurance/learn/what-does-renters-insurance-cover/