As a renter, one of the most valuable purchases you can make is renters insurance. Some landlords require it, but even if yours doesn’t, having this important coverage could mean the difference between experiencing a minor financial setback and total financial ruin. That’s because the landlord’s insurance only covers the repair or rebuilding of the building you live in. It does nothing to protect the things that you own, much less shield you from potential liability. With renters insurance, you can enjoy peace of mind knowing you and your belongings are protected against the unexpected.
Types of Coverage in a Renters Policy
Renters insurance is a broad term used describe the various coverage types included in a typical renters policy. This accumulation of coverages protect more than your possessions; they protect your financial livelihood. Some of the coverage types included in a typical renters policy include:
Coverage for Your Belongings
Whether you are just starting out or have been living on your own for a while, you may be surprised to learn just how much it would cost to replace everything you own. Imagine spending years accumulating furniture, clothing, jewelry, small appliances, electronics, rugs, dishes, and other belongings, only to lose everything in one fell swoop. Could you afford to replace everything all at once?
For a small monthly premium, you can protect all of those things with a policy that protects against a wide range of perils, including fire, theft, smoke, and fallen objects. Be sure to ask how you can upgrade your personal belongings protection to include coverage for the full replacement value of your belongings – not just the depreciated, actual cash value that comes standard with many renters policies.
Coverage beyond Your Home
Coverage for lost and stolen possessions is not necessarily limited to incidents that occur in your home. In fact, renters insurance follows you and the things you own nearly anywhere. If someone steals your purse and laptop out of your vehicle, renters insurance probably covers it. If someone takes your bike off the rack of your vehicle, that’s probably covered, too.
Relocation Costs
Losing everything may also mean losing a place to live. If you are forced to relocate, renters insurance can cover the costs associated with your displacement. This could include the cost of staying in a hotel until you find a new place, as well as the cost of restaurant meals until you can move into a space with a kitchen.
Liability
Renters insurance includes liability protection against third-party injuries and property damages. This includes incidents that occur at your home, as well as those you or a member of your household may be responsible for causing away from home. If you are sued, you can use your renter’s liability coverage to pay for your legal fees, as well as judgments against you for a victim’s medical bills, lost wages, and other related expenses. That means you will likely be covered if your child accidentally knocks another child off the monkey bars or you unintentionally injure someone’s pet while riding your bike.
Choose your liability limits carefully, as they determine the maximum amount the insurance company will pay toward your financial responsibility. Any damages that exceed the policy limit are still your responsibility. Without the right coverage, you might have to write a check from your personal savings, liquidate some investments, sell off some physical assets, or even make payments from your future wages to cover the loss. If you need help determining your liability coverage needs, we can help you calculate your potential risk exposure and how it could affect your financial health for years to come.
Making Your Coverage Work for You
There are several ways you can personalize your renter’s insurance to better fit your needs. For example, personal belongings claims are subject to a deductible, which is the dollar amount you agree to contribute toward the total loss for any personal belongings claims you make against your policy. Choosing a low deductible can reduce your financial burden after a loss, but a high deductible could offer instant, upfront savings on premiums. Our team can help you decide which deductible may be right to fit your preferences and budget.
It is also important to periodically review the dollar limits on your personal belongings coverage. A home inventory can help you keep track of the things you own and their value. This can help you assess your total coverage needs, as well as the need for additional scheduled coverage for high-value belongings like jewelry and firearms, which are often subject to ‘special coverage’ limitations.
Lowering Your Renters Insurance Costs
Having the right coverage is important, but who says it should break the bank? When you work with an independent agent you gain access to quotes from several Arizona renters insurance companies – not just one. That means you get the support of a dedicated agent with the convenience of shopping and comparing rates from multiple carriers.
Renters insurance typically costs only a few hundred dollars per year or less, but we can help you further lower your costs by finding additional discounts. Although these discounts can vary, it is not uncommon to earn savings for:
- Combining renters and auto insurance with the same company
- Being claims-free
- Paying your policy premium in full
- Enrolling in automatic payments
- Implementing certain home safety and security features
To find out more about renters insurance or to request your free quote, contact our office today. We look forward to serving you soon.
