Many people are under the impression that their landlord’s insurance will provide coverage should their personal belongings be damaged however this is not the case. Your landlord’s dwelling insurance will only protect the building and premises if either were damaged. If the property you rent and your personal belongings were destroyed by a disastrous event such as a fire, your personal property will only be protected under a renter’s insurance policy. Whether you are renting a townhome in Hurst, or an apartment in Colleyville, the experienced team here at Lisa Nickels Insurance Agency will help you select a renter’s insurance policy that meets all of your coverage needs.
There are generally two types of policies available to renters. These are named-perils policies and all-risk policies.
- Named-perils policies provide coverage for lost or damage property as a result of specific events listed in the policy. If the policy does not list coverage for a specific event, then you will not be covered for losses incurred as a result of that event.
- All-risk policies on the other hand cover every type of loss unless your policy specifically excludes it. All-risk policies are more expensive than named-perils policies due to the greater number of losses covered.
Not all renter’s insurance policies are the same, but most will include the same common coverages. The most common coverages include:
- Coverage for damage or loss of personal property and belongings up to your policy limit. Belongings stolen from your car, workplace, or while traveling may even be covered under your renter’s insurance policy.
- Personal liability coverage to protect you if someone is injured on your property.
- Loss of use coverage in the event you need to relocate temporarily
Some optional coverages that might be valuable additions to your policy include:
- Coverage for high-value items such as jewelry, collectibles, and antiques.
- Flood insurance
In most cases, your renter’s insurance policy will pay you what is known as actual cash value for your damaged or lost property. What this means is that depreciation as well as wear and tear will be deducted from the value of your property before your claim is paid. Therefore, in order to replace a lost item with a new one that is similar, you will have to pay a portion out of pocket.
Some renters will opt for replacement cost coverage instead of actual cash value. Replacement cost coverage will pay to replace lost items without deducting anything for depreciation or wear and tear. This option will come at a slightly higher premium than actual cash value policies.
Many people don’t consider renter’s insurance because they think it will be expensive, but fortunately that is not the case. The average cost of a renter’s insurance policy nationwide is as low as $20 per month and can offer up to $50,000 in coverage in some instances. Renters can even take advantage of certain policy discounts to save even more money.
Don’t make the mistake of leaving your personal belongings unprotected. The Lisa Nickels Insurance Agency will help you find a great rate on a complete and comprehensive renter’s insurance policy. Contact us today for more information on renter’s insurance or to receive a free quote.