Whether you are just moving in, or have rented for a while, Renter’s insurance is necessary and very affordable. Avoid financial hardship by examining the variety of coverages provided in a renter’s policy and choosing the right option for you. Here is a brief explanation to help you determine your need for protection.
.Personal Property – Renter insurance will cover loss of your personal property from many causes, including wind, fire, theft and vandalism. Personal property is commonly thought of as all the contents of your home.A simple way to think of this is to imagine turning your house upside down and shaking it, everything that falls out is considered contents.
Replacement Cost – We recommend you cover your contents for replacement cost versus actual cash value. The cost is not much more and provides you replacement value for items claimed rather than depreciated value. This can make a huge difference after a loss. For example: if your sofa is destroyed in a fire, replacement cost on contents coverage would allow the company to reimburse you the cost of a new sofa. Actual cash value coverage limits the company payment to the amount your old sofa was worth if you were to sell it.
Away from Premises – A percentage of your coverage also applies away from your home. This is important to know when traveling or normal daily activities take you away from home.
Valuables – You have the option to list (schedule) valuables on your policy. This provides coverage for almost ANY kind of damage including losing the item. This is very affordable (usually under $2.00 per $1000 of value) and well worth considering. The most common items scheduled are jewelry (including engagement rings), computers, smart phones and other high value objects such as hearing aids.
Liability – Renter policies include coverage for defense cost and injury or damage to others if you are sued or determined to be legally liable. Examples include if your dog bites a neighbor or damage if your child breaks a friend’s expensive Chinese vase. Consider your assets when deciding on a liability limit; $500,000 sounds like a lot, but is very affordable and litigation is more expensive than most people consider.
Contact Cobb-Hall today to help you determine the insurance protection that best fits your needs.