The advantage of renting an apartment or home is that your landlord is responsible for insuring the building and taking on the cost of making repairs. But as a tenant, you should know that your landlord won’t cover everything. If your possessions are destroyed in a storm or fire, or items are stolen in a burglary, your landlord’s insurance won’t pay to replace your belongings. Renters insurance can help protect you financially in the instance of a disaster or other loss.
Below are a few tips if you are purchasing renters insurance for the first time.
1. Talk with an insurance agent. An agent can help advise on policy language, coverage offerings, exclusions and financial information pertaining to the insurance company you may be working with. Most renters insurance policies typically offer similar coverages and an agent can speak on firsthand knowledge of which coverages may best fit your situation and budget. Down the road, the client/agent relationship allows for a more comfortable transaction if a claim or peril presents itself.
2. Understand what your policy covers and does not cover. Many tenants assume it is the responsibility of the landlord to protect their property if something happens to the building. This is not the case and the reason why you need renters insurance. Renters insurance covers most specifically your personal property (your belongings) and your personal liability. It is always important to take inventory and have an idea of how much contents coverage you should have if a loss destroyed it all. With personal property coverage, your agent should explain if those contents are covered on replacement cost or actual cash value. Actual cash value policies are generally less expensive, but your personal property is depreciated, therefore, leaving you unable to replace some items.
3. Be aware of your personal liability exposures. Talk with your agent regarding which limit of liability should be on the policy. Many policies have exclusions to personal liability as well; review those exclusions with your agent to make certain you have coverage if the claim arises. For example, certain dog breeds are excluded for liability if a dog bite occurs. If you have a dog or plan to purchase/adopt one, make that call to your agent.
4. Be aware of what is excluded. Floods and earthquakes are not covered by your renters policy. Depending on where you live, these are two coverages that you may want to have as well. An agent can add those specific coverages to your policy for additional cost, but also additional peace of mind.
When you purchase renters insurance, your hope is that you will never need to use it. If the day comes and you do, that relationship you built with your agent will make the process all the better. Depending on the claim and its severity, you should always make your landlord aware, contact the police if necessary, call your agent, document your loss (what belongings were damaged), and be available to the company and agent. Realize the more quickly you file your claim and more thoroughly you document, the faster the claim will be processed.
When you call your agent, be ready to provide your policy number and all the information you currently have about the incident. Your agent can verify the time limit for filing your claim, your coverage, and whether the amount of your claim will be higher than your deductible.
Questions about renters insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.