What Is Renters Insurance?
A renter’s policy gives coverage to your contents and gives liability coverage. The term “contents” is insurance jargon, but “contents” can be simply defined as the stuff you own. That’s electronics, clothes, furniture, your coffee cup collection—everything you own. It may be hard to determine how much coverage you need so it is a good idea to highball your estimate to ensure you have enough coverage for your belongings. Not all renters insurance policies are the same but some of your more expensive items may be limited in coverage. For example, jewelry is a limited item—most of the time the limit for jewelry is $1,500 for all items. But don’t worry; you can insure these more expensive items separately with each piece having its own limit of insurance. This is a great way to cover those items because a deductible usually doesn’t apply. Note that guns, artwork, musical instruments, cameras, and collector’s items. Remember, not all renters policies are the same, if you think you have an item that needs its own coverage, contact your agent at Hennessey, Thames & Leavitt. In addition, you want to make sure the renters policy has replacement cost for your contents. The replacement cost will pay for new contents of like kind and quality without taking depreciation into account. Replacement Cost is the best pay out option you can have at claim time.
Liability Portion Covers Damage
The liability portion of the policy is extremely important for a renter. This gives coverage to any property damage that you may have caused as well as provide personal liability coverage. The liability is the least expensive part of the policy so you should carry as high of a limit as you can. You can be held liable for damages to your rented space so it is important that you have enough coverage. I like to recommend a coverage limit greater than the value of the building you are renting. This way you have enough coverage if there is a total loss to the building resulting from you.
Not Just For Renters
Renter’s policies also work for those who do not pay rent necessarily. For example, if you are living with a relative or in a property they own and not paying rent, you would still need coverage for your contents and liability. The homeowners policy for the owner of the home will NOT cover YOUR belongings. In this case, you would still pick a coverage limit for your things and liability. In the event of a loss, you would be compensated for your belongings. If you did not have this policy, there would be no coverage for your stuff because the property owner’s policy does not protect you. Most people do not know this—never assume that someone else’s insurance policy will protect you.
Bundle Policies to Save
Renter’s policies are usually inexpensive especially when packaged together with an auto policy. Most of the time the home/auto discount offsets the cost of the renter’s policy.
Hennessey, Thames and Leavitt Insurance agency would be happy to discuss renter’s insurance options with you. Please call our office at 601-636-5560 or stop by at 1001 Belmont Street Vicksburg MS 39180. You can also catch us on the web at www.leavitt.com/Vicksburg.