Nobody likes a hassle, especially in the event of a claim. That is why knowing what you are covered for and when you are covered under your renter’s insurance policy is important.
The renter’s insurance has only two basic sections, Renters Insurance Coverage – Standard and Perils Insured Against, as well as several optional endorsements that can be included on your policy.
The Renters Insurance Coverage – Standard section provides you with a list of your coverages and applicable deductibles. This section consists of:
Coverages C (Personal Property) – Provides coverage towards your personal property such as clothes, furniture, and electronics up to your policy limit.
Deductibles – The amount you will be responsible for at the time of a Personal Property claim. Ie. If you have a $500 deductible, then you would be responsible for the first $500 of the claim.
Liability Limits – Provides coverage to people injured that you are legally liable for due to neglect. This provides coverage for injuries and lawsuit against you up to the selected limit on your policy. Ie. A visitor slips on a wet floor in your kitchen. Your dog bites a kid while it’s being walked.
Medical Payments – Provides coverage to an injured party up to the selected limit on your policy within three years of the injury. Unlike the Liability limits above, you do not have to be legally liable for the injury. Ie. A friend cuts his finger while slicing vegetables in your kitchen.
Replacement Cost – An optional coverage provides replacement personal property at the value of your property at the time of purchase. This replaces the standard Actual Cash Value (ACV) which factors in the depreciation (i.e. age and condition of the property) when determining its value.
Earthquake – Another optional coverage that will extend the above coverages to your property in the event of an earthquake.
The Perils Insured Against tells you what situations you will be covered for, thus removing any gray area concerning when you are covered and when you are not. The events covered are:
– Fire or Lightning
– Windstorm or Hail
– Explosion
– Riot or Civil Commotion
– Aircraft, Vehicles, Smoke
– Vandalism or Malicious Mischief
– Theft
– Mysterious Disappearance
– Burglary
– Falling Objects
– Weight of Ice, Snow, or Sleet
– Sudden and Accidental Damage from Artificially Generated Electrical Current
– Volcanic Eruption
The optional endorsements include special endorsements not currently on your policy such as jewelry, business property, personal computer, and even bicycles.
With this basic information, you can ensure that you are properly covered based on your needs and prevent displeasure during the claims process due to confusion of when you are covered.