Important Information for Renters

Even if you rent, a mishap can still cost you money, or make you the target
of a lawsuit. Protect yourself and your property with tenants insurance.
When it comes to your clothing, jewelry, furniture, stereo, TV and other
personal belongings, renting an apartment or house is no different than owning a home. You could still face the cost of repairing or replacing these items because of fire, theft, wind and other hazards.

Similarly, your exposure to lawsuits isn't that much different from that of a homeowner. You could still be held legally responsible for an accident, whether it happens at your residence or elsewhere.

Here are some common misconceptions regarding tenant's insurance.

MYTH: My landlord's insurance will cover my personal possessions and liability. FACT: Your landlord generally doesn't have to provide insurance for you. You need your own coverage.
MYTH: A few rooms of furnishings and clothing shouldn't be worth all that much. FACT: Many people don't realize how much they have invested in their personal belongings. Think about it. What would it cost you to replace just the clothes in your closet, or your music collection? Replacing your belongings could cost you thousands of dollars.
MYTH: I can't afford insurance. FACT: Compared with the value of your possessions and the potential cost of defending a lawsuit and paying a judgment against you, insurance is relatively inexpensive.


What does Tenants Insurance protect?


Most renters insurance policies are similar to policies you'd have if you owned your home. Your renters policy will cover your furniture, clothing, TV, stereo, appliances and other personal property subject to the policy deductible. Protection is worldwide -- if your clothing is stolen from your car while you're on vacation, you're covered. But this protection is limited to losses resulting from perils listed in your policy. Some of the typical perils are fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicle damage; smoke damage; vandalism or malicious mischief; theft; falling objects; and artificially generated electrical current.

How much Tenants Insurance do I need?

There are two ways to determine how much insurance you need:
1.Take a complete inventory of your possessions, listing each item, when you acquired it and the purchase price or current value. Totaling up the amounts of these items will give you a rough idea of what your property is worth. Once this is done, put your inventory in a safe place away from home -- for example, in a bank safe deposit box. Consider adding photos to your inventory -- they can help if you have a claim.

2.Ask your agent to help you estimate the total value of your belongings. A system is available to help you determine the approximate cost of replacing your possessions based on the size or number of rooms in your dwelling.



Something to keep in mind
Coverage for certain types of property have a dollar limit. Here is a typical list of the types of property that may have "special limits" in a tenants policy (these may vary among insurance companies):
  • Money, bank notes, coins
  • Business property (on and off premises)
  • Securities, negotiable instruments
  • Watercraft, including trailers, furnishings and equipment
  • Bicycle, equipment & accessories
  • Trailers (other than boat trailers)
  • Jewelry and furs
  • Garden type tractors including attachments & accessories
  • Silverware and goldware (limitation applies to theft only)

If you have this type of property, you may need special coverage -- either an endorsement or a personal articles policy.
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