Archive for category: Renters Insurance

Insurance. It’s one of those topics some people prefer to ignore.

That is, until they need it.

Renters insurance is a type of coverage that should be well thought out. If life does throw an unwanted curveball at you, be it a fire, theft, or a fluke accident, you want to ensure you’ll be covered, both financially and with peace of mind.

Not sure where to start? Whether you’re getting your first place or have been gambling by going without renters insurance for years, this article will break down two types of renters insurance policies in detail so that you can make the best choice for your individual needs.

What is renters insurance?

Put simply, renters insurance is coverage the protects your possessions in the event of a disaster or unforeseen event. This type of insurance will cover your belongings against loss from vandalism, theft, smoke, fire, windstorm, lightning, water damage (excluding floods) and more. Similar to homeowners insurance, you are covered under renters insurance if someone should get injured on your premise and file a claim.

Your landlord might have insurance to protect the building you live in. But their policy will do nothing to protect your individual possessions. If your home is a complete loss, the structure may be rebuilt but you’ll be coming back to an empty home.

Renters insurance comes with two basic policies: replacement cost and actual cash value coverage.

Replacement cost coverage is generally going to be a little higher in rates since it pays out more.  Actual cash value will pay the cost of replacing your possessions, but only at depreciated value.  It’s important that you really understand the distinction between both before deciding on which coverage you want.

Actual cash value

Actual cash value renters insurance will pay to replace your possessions minus their depreciation. For example, your couch may have cost you $3,000 when you bought it, but this was ten years ago. The depreciation deduction could leave you with very little actual cash value as the item’s actual cash value will be the amount it is worth on today’s market.

The benefit of going with actual cash value on your renters insurance is that you will have lower monthly premiums since you will only get the depreciated value of your damaged items. However, you might not get enough reimbursement to fully replace your items.

If you’re just starting out and don’t have much to claim yet, an actual cash value policy could save you some money while you save up for matching furniture sets and your dream entertainment system.

Replacement

If you’re concerned that an actual cash value policy could still leave you with a financial wound, a replacement cost policy is worth looking into.

Replacement cost will pay for replacing your damaged, destroyed, or stolen possessions at full value without deducting for depreciation. This is often estimated as the amount you originally paid for the item.  If this particular item is not available any longer, you will still get the original price you paid for it to find a similar item. Should the item you bought be available but the price for it has been reduced, the value for it might be reflected in your claim.

In some cases, the replacement cost might be paid in a couple installments. The insurer might often send an initial ACV payment for the item or half of the entire replacement cost.  After you have purchased a replacement, documentation will need to be sent in by you to the insurance company so they can send you the remaining amount.

The benefit of choosing replacement cost on your renters insurance is that your damaged item will be replaced fully at current market value.  No depreciation is deducted; however, you will have a slightly higher monthly premium.

If you own high-end furniture, several televisions, laptops, and other electronics, or have filled your home with plenty of décor accents and furnishings, a replacement cost policy is best for you. Certain items can depreciate quickly, even if they’re still in great shape. This policy will ensure you can replace any lost items with those that won’t leave you feeling shorted.

What else should I know?

No matter which of the discussed policies you choose, there are a few situations that aren’t covered. This includes flooding, earthquakes, and hurricanes. To further protect yourself, you may want to consider purchasing floaters, or additional policies.

There are also limitations on certain types of coverage. For example, most policies have limited coverage on items like jewelry. If your jewelry box is a bit light, the limited coverage could be more than enough. But if you’re a collector of the finer things in life, purchasing additional coverage is the wise thing to do.

When obtaining renters insurance, it’s essential that you take inventory of all your possessions you wish to cover and assess the value of each for replacing them should accidental damage, disaster or theft happen.

How do I know which is right for me?

Still not sure which insurance policy you should go with? Tallying up the current value of your possessions and receiving quotes for both types is a great place to start. But speaking with an insurance agent will guarantee you the perfect coverage.

Keep in mind that you can always change your policy. What serves as proper coverage today might be inadequate a year down the line.

If you’ve been flirting with disaster for too long by avoiding renters insurance, the best time to look into a policy is now. The last thing you want to face is a smoldering building and the loss of all your possessions simply because you put off making the initial call.

If you rent your place then you need to be thinking about renters insurance. You may be a careful, responsible person, but your new neighbors may not be. Between accidents, injuries, and natural disasters, insurance is the best way to protect yourself and your property.

Insurance for Renters

There are several reasons why renters might avoid renters insurance. They may think that they take good care of their belongings and their apartment, so nothing bad can happen. Unfortunately, doors get left unlocked, ovens get turned on and forgotten, and bathrooms flood. When you live in an apartment building, you are often at the mercy of your fellow tenants.

Other renters erroneously believe they don’t need insurance because their landlord’s insurance will cover them in the event of a fire, flood, or theft. The truth is that your landlord’s insurance only protects them, not their tenants. It covers them against structural damage and, in many cases, damage that renters cause. However, your personal property won’t be covered without a renters insurance policy.

Another reason renters shy away from insurance is because they don’t believe they have anything worth covering. But the truth of the matter is, renters tend to have more valuables than they did a few decades ago. When you’re considering the value of your belongings, remember to include:

• Furniture
• Televisions
• Laptops and assorted electronics
• Gaming systems
• Smart speakers
• Jewelry
• Antiques and heirlooms
• Clothes
• Renter-owned appliances (washer and dryer, microwave, etc.)

You may be surprised by how quickly these all add up. Do some research to determine how much your possessions are worth based on replacement cost. So, how much would it cost you to replace your TV? Make sure your policy will cover everything, and talk to your insurance broker to make sure you have the coverage you need.

Covering Your Furry Friend

There could be as many as 1.1 million pets living in New York City, according to the NYC Economic Development Corporation. That means hundreds of thousands of pets living in rental apartments. If you’re living in a rental with your pet, here’s what you should know to keep them covered.

Therapy and service animals are becoming more popular recently. According to New York state law, service animals are permitted in all public and private housing accommodations, including hotels and other lodges.

However, support animals, such as therapy pets and emotional support pets, are not necessarily required to be permitted by landlords. If you have a support animal, talk to your landlord about your situation to find out whether or not your pet is permitted.

With that said, it’s important to note that your pet is not included in your renters insurance policy. This goes for service and support animals as well. Since they are not property, they won’t be covered in the event of an accident or if your pet is injured. Fortunately, if your furry friend is the one causing damage, there are provisions that cover pet-related damages in most renters insurance policies.

For example, if your dog chews through a fixture in the apartment, such as a railing, the damage would be covered under your liability policy in most cases. Likewise, your pet would be covered in the event that they bit someone in your apartment. Note that damage caused by your pet is not covered if the pet was living there illegally, or without the landlord’s knowledge.

If you or your landlord are worried about your pet damaging your apartment, invest in a renters insurance policy. It’s an easy and inexpensive way to protect your personal property. Talk to your insurance broker for more information about finding the right policy, today.

You’ve done the smart thing and purchased renters insurance. But unless you’ve read the fine print of your insurance policy, you may be unaware of what renters insurance doesn’t cover.

But fear not. We’re outlining the most common insurance claims that aren’t covered by your renters policy so you can better prepare for the future.

What renters insurance doesn’t cover

Despite what you might think, renters coverage does have limitations. To make sure you’re covered in nearly every conceivable situation, browse through the following categories. Are you leaving anything up for grabs?

Mother Nature’s wrath

If you’ve been a longtime resident of New York City, you know that several different weather scenarios can play out in a 24-hour period. While some weather occurrences or effects of them are covered by insurance, like windstorms and lighting, you’ll more often find that natural disasters aren’t covered by your insurance policy.

If you have basic renters coverage, your belongings are not protected from flooding, hurricanes, or earthquakes. If you believe you live in an area where any of these disasters are possible, you’ll have to purchase a separate policy to be protected.

Expensive or rare items

If you’re a collector of the finer things in life, you may be surprised to learn that they’re not covered under your standard renters insurance policy. This could include, but is not limited to, jewelry, high-priced artwork, rare sports memorabilia, appraised family heirlooms, and rare collectibles.

If you’re not sure if something is covered by your current policy, it’s always best to contact your insurance agent and discuss your coverage. You may need to purchase a separate insurance policy for valued items.

Roommate’s possessions

If you’ve had a roommate join you in your humble abode, you should suggest renters insurance to them. Let them know that even though you have a policy, their items will not be covered underneath it. The exception to this is that if you’re living with a family member, their items will be covered, as long as their name is added to the policy.

Undocumented items

Unfortunately, false insurance claims happen. To protect themselves and keep your premiums as low as possible, insurance companies almost always require documentation to prove ownership of an item in the event it is damaged or stolen.

To protect yourself, make sure you keep receipts for large or expensive items. Use a spreadsheet to keep track of your personal inventory and important data like serial numbers. The more information you gather, the better. Digitize your records and store them in a cloud for added protection. You should also take video or pictures of all your items and store them in a safety deposit box or another safe location. If you’re concerned about your more expensive items, have them professionally appraised and then insured properly.

So what does renters insurance cover?

What is not covered through renters insurance is slight when you compare it to the list it does cover. This type of policy is one of the most comprehensive types of coverage available, including coverage for personal possessions, liability insurance, and additional living expenses.

Renters insurance covers:

• • Theft or burglary (at home or while traveling)

• • Fire

• • Vandalism

• • Personal belongings like furniture, clothing, and home furnishings

• • Injury to another person while in your apartment

• • Damage to another person’s property caused by you

• Expenses to live in another place in the event your place becomes uninhabitable

As a renter, you should purchase an insurance policy before moving into your rented space. But it’s never too late. If you’ve been gambling by going without coverage, there’s no better time than the present to pick up the phone and speak with an insurance agent regarding your unique coverage needs.

How to complete your coverage

One common misconception regarding renters insurance is that once you have it, you’re 100% safe from damages. Unfortunately, your valuables are only covered up to the specified amount the insurance companies provide.

Often, depending on the value of your items, this amount is not enough should the valuables become damaged or are stolen. To ensure your jewelry, fine art, or other collectibles are properly insured, you can purchase a floater or a separate policy to add on to your existing insurance.

Insurance riders are a good example of additional coverage. If you have expensive watches, furs, jewelry, a rare coin collection, or other valuables, a cost-effective insurance rider will provide that extra coverage on top of what your standard policy covers.

Remember, while a landlord insurance policy typically covers the building structure itself, it’s up to you to cover your belongings inside your apartment and know what renters insurance doesn’t cover.

The best way to prevent being caught off guard is to speak with an insurance agent. They can review your policy and address any coverage concerns you may have. It only takes a few minutes to expand your coverage and sleep better at night.

For many college students, living on campus is a chance for students to learn how to be on their own and prove they’re responsible. Unfortunately, even the most reliable of college students lose belongings in the event of theft, natural disaster, and/or accidental damage. With that in mind, renters insurance for college students offers both peace of mind and coverage in the event of unforeseen circumstances.

Some parents may find that their homeowners insurance policy will cover their child’s belongings, even while they’re away at school. Sometimes, universities will offer renters insurance to their students before they move in. But even if you don’t have one of these options available to you, that’s no reason to go without.

Parties Gone Awry

College and partying seem to go hand in hand, which can spell bad news for landlords and parents alike. Damage during parties can range from a few scuffed floors or dented walls to serious structural and personal property damage. College students should be prepared, which means protecting themselves in case of an accident.

For instance, you might think you’re covered by your roommate’s renters insurance. Unfortunately, your roommate’s policy will only protect them and their belongings; renters insurance only covers the person named on the policy. So if someone accidentally spills a drink on your laptop or breaks your coffee table, you’ll be replacing it out of pocket unless you have your own policy. An expense like that can put some serious financial strain on a college student.

Or, for instance, take the students at the University of North Texas whose ceiling collapsed when a party in the apartment above them got out of hand. No one was seriously injured, according to the Washington Post, but several students were unable to salvage their possessions from the damage. Losing everything you own can set you back tens of thousands of dollars — not an expense you need when you’re already paying for tuition.

There are countless stories like this, of students getting caught in the middle of some serious damage to their apartment, that could have been avoided with a simple renters insurance policy.

When Disaster Strikes

Parties aren’t the only major threat to college apartments. Hurricane season runs from June through October, overlapping with the beginning of the fall semester. Back in 2012, Hurricane Sandy caused extensive damage to about 100,000 homes in Long Island alone, according to Newsday. Students facing a storm like that could lose everything they own.

Aside from storms, theft, fire, and flood can all spell huge amounts of damage for students just finding their financial footing. Your landlord’s insurance will only cover structural damages and damage to the building in the event of a disaster like that, so your belongings wouldn’t be covered.

Fortunately, insuring your college apartment is an inexpensive and simple way to protect your personal property. An insurance agent can help you determine what kind of coverage you need and find the best deal on a policy.

Peace of Mind for Parents

Accidents happen. But when your college student is learning how to get by without you, you don’t want those accidents to lead to permanent financial setbacks. The great thing about renters insurance is that it’s affordable and keeps them protected, even when they’re miles away from home. Many policies cost less than a laptop, and will keep that laptop protected.

Do some research, consider how much insurance you might need, and consult your insurance broker. You may need different types of policies depending on the type of apartment building your student will be living in, how many people they’ll be living with, etc. It’s also a good idea to consult with their landlord and roommates about renters insurance for college students to make sure everyone is on the same page.

Creating a renters insurance policy in your child’s name is a great way to give them more responsibility in their lives while keeping them and their belongings safe. Come natural disaster, party gone awry, or simply everyday accidents and damages, insuring your college apartment is the easiest and most affordable way to protect your belongings and your financial stability.