Renters Insurance Explained
There are 3 major pieces to the property policy for a renter also known as a tenants policy.
1. Liability coverage helps protect the insured should a loss they cause damage their rental or should someone be injured on their property and they are found liable for the injury. I recommend $300,000 minimum, but if you are in an apartment or condo with a shared wall, you should carry minimum $500,000.
2. Personal Property coverage provides protection to your belongings not just from theft, but should a catastrophic loss such as a fire destroy your belongings or everything you own. I recommend a minimum of $30,000, however one of our carriers recently evaluated personal property limits and found the approximate cause to re-furnish a standard 2 bedroom condo was $75,000.
3. Loss of Use coverage (which is included in a standard policy) provides additional living expenses should you have to live somewhere else due to a covered loss such as interior water damage or a fire. I know many of us wouldn’t be able to pay for another rent.
Besides the important protection offered by a Renters/Tenant policy, some discounts on auto policies for simply having a renters policy are more than the actual cost of a standard renters policy. 2 for the price of 1 is hard to beat!
If you are a renter with a roommate, most carriers will not extend coverage from one tenant’s policy to another so you are most likely not covered by your roommate’s policy. Some exceptions do exist, so please contact your agent, or give us a call!
Source: Gretchen Vaughn’s Weekly Wednesday Insurance Tip